(a) When a resident is subject to and has paid a municipal income tax in another municipal corporation on the same income taxable under this chapter, regardless of whether such other municipal corporation allows a credit to its residents, and the rate of Cleveland’s municipal income tax is less than two and one-half percent (2.5%), such resident may claim a credit of the amount of income tax paid to the other municipal corporation, but not in excess of fifty percent (50%) of the tax imposed by this chapter or fifty percent (50%) of the tax imposed by the other municipal corporation, whichever is less. When a resident is subject to and has paid a municipal income tax in another municipal corporation on the same income taxable under this chapter regardless of whether such other municipal corporation allows a credit to its residents and the rate of Cleveland’s municipal income tax is two and one-half percent (2.5%) or more, such resident may claim a credit of the amount of income tax paid to the other municipal corporation which credit shall not exceed the tax assessed by this chapter on the resident’s taxable income subject to tax by another municipal corporation.
(b) In the event a resident is entitled to credit for taxes paid another municipal corporation, such resident is required to file a return on a form in such manner as the Tax Administrator may prescribe.
(c) Assignment of any claim for refund to which a resident may be entitled from another municipal corporation shall be tentatively accepted as payment of that portion of city income tax represented by such assignment. However, if satisfactory evidence is offered that the taxpayer is entitled to the claim covered by the assignment, such taxpayer shall not be deprived of credit therefore because of fault or neglect on the part of either municipal corporation.
(d) In the event such resident fails, neglects or refuses to file such return or form as is prescribed by the Tax Administrator, such resident shall not be entitled to such credit and shall be considered in violation of this chapter for failure to file a return and make payment of taxes due hereunder.
(e) A resident owner of a pass-through entity that does not conduct business in the City and that has paid an income tax to another municipal corporation may claim a credit equal to the lesser of (i) the resident owner’s proportionate share of the amount, if any, of income tax paid by the pass-through entity to another municipal corporation in the state; or (ii) the resident owner’s proportionate share of the amount of city income tax that would be imposed on the pass- through entity if the pass-through entity conducted business in the City.
(f) In no case shall the amount of the credit allowed under division (e) of this section exceed the tax assessed by this chapter on the resident owner’s taxable income subject to tax by another municipal corporation.
(g) The credits provided in RC 718.021 and 718.121 shall be available to residents, if applicable.
Except as otherwise provided in RC Chapter 718, this chapter and the rules and regulations, where a nonresident is subject to the tax imposed by this chapter and is subject to tax on the same taxable income in the municipal corporation where such nonresident resides, no credit against the city income tax levied by this chapter shall be allowed.
(Ord. No. 1412-15. Passed 11-23-15, eff. 1-1-16)