5.26 Ark. Code R. 51-718(d)
Current through Register Vol. 49, No. 10, October, 2024
Every taxpayer engaged in the business of operating a bus line or trucking company both inside and outside of Arkansas shall determine its net income subject to Arkansas income tax by taking that portion of the total net operating income that the total number of miles operated within Arkansas bears to the total system miles.
Example: XYZ Trucking Company had federal taxable income of $1,000,000. It operated 10,000,000 total miles and 500,000 miles in Arkansas. The Arkansas apportionment factor is 500,000 divided by 10,000,000 or 5% and, assuming no adjustments to federal taxable income are necessary to arrive at apportionable income, Arkansas taxable income is $1,000,000 X 5% or $50,000.
5.26 Ark. Code R. 51-718(d)