(A) Credit for tax paid to another municipality.
(1) Limitation on amount paid. Where a resident of the village is subject to a municipal income tax in another municipality by reason of that municipality being the situs of the resident’s employment, the resident shall not pay a total municipal income tax on the same income greater than the tax imposed at the higher rate.
(2) Credits and limitations. Every resident who earns or receives taxable income for work done or services performed or rendered outside of the Village, if the resident has paid a municipal income tax on the same income taxable under this chapter to another municipality, shall be allowed a credit against the tax imposed by this chapter of the amount so paid by the resident or on his or her behalf to such other municipality for taxes paid in the same tax year. The credit shall not exceed the tax assessed by this chapter in the same tax year on such income earned in such other municipality or municipalities where the tax is paid. Credits may not be carried forward to future years.
(3) Claim for credit or refund. A claim for credit or refund shall be made in such a manner as the Administrator may provide by regulation.
(B) Refundable credit for qualifying loss. A refundable credit shall be allowed against the income tax imposed by the Village for each qualifying loss sustained by a taxpayer during the taxable year, as provided under R.C. § 718.021 which is incorporated herein by reference.
(C) Credit for person working in joint economic development district or zone. The village shall grant a credit against its tax on income to a resident of the village who works in a joint economic development zone created under R.C. § 715.691 or a joint economic development district created under R.C. §§ 715.70, 715.71, or 715.72 to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation, pursuant to § 101.08(A).
(R.C. § 718.16)
(D) Credit for tax beyond statute for obtaining refund.
(1) Income tax that has been deposited or paid to the village, but should have been deposited or paid to another municipal corporation, is allowable by the village as a refund, but is subject to the three-year limitation on refunds as provided in § 101.09(F).
(2) Income tax that should have been deposited or paid to the village, but was deposited or paid to another municipal corporation, shall be subject to collection and recovery by the village. To the extent a refund of such tax or withholding is barred by the limitation on refunds as provided in § 101.09(F), the village will allow a non-refundable credit equal to the tax or withholding paid to the other municipality against the income tax the village claims is due. If the village’s tax rate is higher, the tax representing the net difference of the tax rates is also subject to collection by the village, along with any penalty and interest accruing during the period of nonpayment.
(3) No carryforward of credit will be permitted when the overpayment is beyond the three-year limitation for refunding of same as provided in § 101.09(F).
(4) Nothing in this section requires the village to allow credit for tax paid to another municipal corporation if the village has reduced credit for tax paid to another municipal corporation. Section 101.08(A) prevails if there is any conflict with this section.
(R.C. § 718.121) (Ord. 2015-12, passed 11-9-15)