(a) Where any person, firm, or corporation is engaged in a general taxicab business of transporting persons for hire in adjoining cities and incorporated towns which are separated by a state line, where the motor vehicles or taxicabs are operated in this state under a franchise contract or permit with the Arkansas city or town, where the motor vehicles or taxicabs are not operated on any of the roads or highways in this state outside of the corporate limits of the city or town, and where the motor vehicles or taxicabs shall pay to this state motor vehicle fuel tax, at the applicable rate as fixed by the law of this state, upon all of the motor vehicle fuel used in the operation of the motor vehicles or taxicabs, then the fee to be paid to this state for the registration and licensing of any motor vehicle or taxicab so used by any person, firm, or corporation shall not exceed the fee provided by law in the adjoining state for the motor vehicle or taxicab.
(b) This section shall not apply to motor buses being operated in lieu of a streetcar system in adjoining cities or incorporated towns which are separated by a state line.
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