(a) Resident individuals of the City who are required to pay and do pay tax to another municipality on qualifying wages, salaries, including sick, vacation, severance and any pay as part of an employee buyout or wage continuation plan, tips, commissions, gratuities, bonuses and incentive payments and other compensation for work done or services performed outside the City, may claim a credit, with limitation, of the amount of the tax paid by them or on their behalf to such other municipality to extent of the tax imposed by the ordinance on such income. Such credit shall be limited to a maximum of one percent (1%) of the income upon which the income tax is paid to such other municipality.
(b) Resident individuals of the city who are required to pay and do pay tax to another municipality on net profits from business, professions, or other activities conducted outside the City, may claim a credit, with limitation, of the amount of the tax paid by them or on their behalf to such other municipality to extent of the tax imposed by the ordinance on such income. Such credit shall be limited to a maximum of one percent (1%) of the income upon which the income tax is paid to such other municipality.
(c) A resident taxpayer with income from a pass-through entity shall be granted a credit where a resident of the City, is subject to income tax in another municipality, for taxes paid to another municipality by a pass-through that does not do business in the City. The amount of the credit shall equal the lesser of the following amounts:
(1) The amount, if any, of tax paid by the pass-through entity to another municipal corporation in this State, apportioned according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity.
(2) The amount, limited to one percent (1%) of the income, that would be imposed on the pass-through entity by the City in which the taxpayer is domiciled, if pass-through entity conducted business in the City, apportioned according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity.
(d) A return must be filed for the purpose of claiming such credit or allowance, together with evidence of the payment of similar tax to the municipality in which such resident has a source of income, as the Tax Administrator may require.
(e) A “second municipality credit” provides a non-refundable credit against tax imposed on income or wages if tax was previously paid or withheld to another municipality on the same income or wages and the time period for obtaining a refund from the first municipality has expired. If the tax rate in the City is less than the tax rate in the first municipality, then the credit amount is calculated with reference to the credit limitations of this City.
(Ord. 2-05-O. Passed 2-14-05.)