Sandy Springs City Council is scheduled to review the city’s controversial business occupation tax during its Dec. 21 meeting.

In a memorandum to council members, Sandy Springs City Manager John McDonough outlined several possible changes the city could adopt. Businesses have complained that the city collects too much through the tax.

“During the course of collection of the occupation tax, certain issues have been raised as to the method of the city’s implementation of the occupation tax,” McDonough wrote. “Specifically, questions have been raised as to the method of the city’s calculation of gross receipt based upon services rendered to customers that reside outside of the state.

“While the courts have affirmed the city’s method of calculating gross receipts for services, it appears that as a matter of policy the city should review its interpretation based upon the feedback of the business community.”

McDonough said the city could decide to not collect fees based on whether a business’ customers and franchises are in Georgia or outside the state.  The city also could cap the amount of the tax in a year, he wrote, or provide an across-the-board reduction in the assessment based on a business’ gross receipts.

Exempting out-of-state sales from the tax could cost the city $3.2 million in revenue a year, the memorandum said.  Exempting out-of-state franchise could cost the city $150,000 a year.

The council’s meeting begins at 6 p.m. at Sandy Springs City Hall, 7840 Roswell Road.

To see the full agenda for the meeting, go to .