The Act clarifies how service companies are required to report net income attributable to Georgia. Service companies must allocate their income based on a three-factor formula, which is a similar method to that which nonservice companies have been required to use. The Act allows a service company to petition the Revenue Commissioner if use of this formula does not fairly represent the company’s business activity in Georgia. Finally, the Act requires that local income taxes be apportioned in the same manner as state income taxes.
"REVENUE AND TAXATION Income Taxes: Hold Service Providers to Three-Factor Tax Apportionment Standard Used by Manufacturers,"
Georgia State University Law Review: Vol. 12
, Article 1.
Available at: http://readingroom.law.gsu.edu/gsulr/vol12/iss1/1