(A) Limitation. Where a resident of the Village of Anna is subject to a municipal tax, on or measured by income, in another municipality either located within or without the State of Ohio, he or she shall not pay a total municipal tax on the same income greater than the tax imposed at the higher rate.
(B) Credits to residents. Resident individuals of the Village of Anna who are required to pay and do pay tax to another municipality on salaries, qualifying wages, commissions, or other compensation for work done or services performed in other municipality or on net profits from businesses, professions, or other activities conducted in any other municipality, may claim a credit of the amount of tax paid by them or on their behalf to the other municipality but only to the extent of 1% and additional 3/4% tax imposed by the regulations and § 36.03 on the compensation or net profits.
(C) Credits for taxes paid at the entity level by Subchapter S corporations and partnerships. Credit shall be given to resident individuals of the village who receive pass through income from a nonresident business when that business is obligated to pay the tax on the net profits of the business to another Ohio municipality.
(1) A resident will receive automatic credit when it is shown that the business entity is entirely situated in another taxing jurisdiction and that 100% of the income is taxable to that municipality. The credit will be limited to:
(a) The rate of tax imposed by the other taxing jurisdiction;
(b) The rate of tax in effect in the other city; and
(c) The credit shall not exceed the rate in effect for the Village of Anna.
(2) A resident will receive credit for taxes paid to other Ohio municipalities when evidence is presented that the business allocated income and paid the tax to other Ohio cities. The credit will be limited to:
(a) The percentage of ownership; and
(b) Shall not exceed the rate of tax in effect for the Village of Anna in that year.
(3) (a) A credit will be given to a resident who receives a distributive share when the entity conducted a portion of its business inside of the Village of Anna and paid the tax on the allocated net profits to the village.
(b) The credit will be calculated using the same percentage as the stock ownership or the partner’s share of profit and loss, of the resident for that year.
(4) (a) Under no circumstance shall the Village of Anna tax be imposed on the same income more than once in any given year.
(b) A resident who pays the tax on his or her distributive share of income from a nonresident business entity that conducted 100% of the business activity outside of Village of Anna, shall not pay the tax on the net profits of the business to the Village of Anna.
(c) A resident who pays the tax on his or her distributive share of income from a nonresident business entity that allocates a portion of the net profits to the Village of Anna and paid the tax thereon, shall receive a credit for the tax paid to the Village of Anna by the business limited by the percentage of ownership or the partner’s share of profit and loss in that year.
(D) Method of applying for credit.
(1) No credit will be given unless the taxpayer claims that on his or her final return or other form prescribed by the Commissioner, and presents the evidence of the payment of a similar tax to another municipality, as the Commissioner may require.
(2) A statement satisfactory to the Commissioner from the taxing authority of the municipality to which the taxes are paid that a Village of Anna resident or his or her employer is paying the tax shall be considered as fulfilling the requirement of the chapter.
(3) No credit shall be given to a nonresident employee who lives in a municipality that does not allow credit for taxes paid to other cities. In these cases, the nonresident employee will be paying tax on the same income to more than one municipality.
(Ord. 1690-15, passed 12-22-2015)