2.26 Ark. Code R. 51-204
Every taxpayer, other than a railroad, engaged in the business of operating railcars or in the business of furnishing or leasing railcars, by whatever name known, for the transportation of freight or property whether or not owned by such taxpayer, over any railway lines partly within and partly without the state, shall determine the net income subject to tax by taking that portion of total net operating income that the total miles operated in the state bears to total system miles operated.
Example: A corporation which is a private railcar owner had $200,000 federal taxable income, and operated 2,000,000 total miles in Arkansas and 20,000,000 miles everywhere. The apportionment factor is 10.000000% and Arkansas taxable income is $20,000, assuming no adjustments to federal taxable income are required.
(2,000,000 ÷ 20,000,000) x $200,000 = $20,000
2.26 Ark. Code R. 51-204