Arkansas Code § 26-52-417 - Motor Fuels Used in Municipal Buses

(a) The gross receipts or gross proceeds derived from the sale of motor fuel to an owner or operator of a motor bus operated on designated streets according to regular schedule and under municipal franchise which is used for municipal transportation purposes shall be exempt from the tax levied in this chapter.

(b) However, it shall be unlawful for the owner or operator of a motor bus operating under municipal franchise as provided in this section to use any or permit the use of any motor fuel upon which the gross receipts tax has not been paid in any motor vehicle other than a motor bus operated on designated streets according to regular schedules under municipal franchise.

(c) (1) Any owner or operator of a motor bus permitting motor fuel to be used in violation of this section shall be guilty of a violation and upon conviction shall be fined in an amount of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000).

(2) In addition to the fine in subdivision (c)(1) of this section, the owner or operator shall be liable to the State of Arkansas for a penalty of triple the amount of gross receipts tax due the State of Arkansas on any motor fuel upon which the gross receipts tax has not been paid and which was used in violation of the provisions of this section.

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Last modified: November 15, 2016