Arkansas Code Title 26. Taxation § 26-55-102. Buses--State lines

(1) More than one-half ( 1/2 ) of the mileage of the routes regularly run by the motor bus system is outside this state;

(2) More than one-half ( 1/2 ) of the gross revenues of the system is derived from its operation outside this state and from the carrying of passengers from outside this state into this state;

(3) The system is operated in this state under a franchise contract with the Arkansas city or town;

(4) The motor buses are not operated under any conditions whatever on any of the roads or highways in this state outside the corporate limits of the city or town; and

(5) The motor bus system shall pay to this state a motor vehicle fuel tax at the applicable rate as fixed by the law of this state upon at least one-half ( 1/2 ) of the motor vehicle fuel used in the operation of the system as a whole.