A taxpayer, subject to tax in more than one municipality on the same income, who has complied with the provisions of this chapter, shall be allowed a credit towards the City of Elyria income tax on such income as provided herein:
(a) Residents.
(1) When the taxable income of a resident of the City is subject to a municipal income tax in another municipality on the same income taxable under this chapter, such resident shall be allowed a credit of the amount of municipal income tax paid on such taxable income to such other municipality equal to 50% of an amount obtained by multiplying the lower of the tax rate of such other municipality or the tax rate of the City of Elyria by the taxable income earned in or attributable to the municipality of employment or business activity. For purposes of this section, taxable income shall include the distributive share of the net profits of a resident partner, shareholder of a subchapter S corporation, member of a limited liability company or any other pass-through entity, or owner of an unincorporated business entity.
(2) When a resident of the City is subject to and has paid, or has acknowledged liability for, a municipal income tax in another municipality on the same income taxable under this chapter, then such resident may claim a 100 percent credit allowance against the City's income tax.
(b) Nonresidents. When a nonresident of the City is subject to the tax imposed by this chapter and is also subject to tax on the same income in the municipality of his or her residence, he or she shall not be allowed any credit or claim of refund, nor will the City acknowledge or allow any claim for refund of any portion of such tax so levied.
(c) Timely Claims. The credits provided for in subsection (a) hereof will not be allowed unless the same are claimed in a timely return or form acceptable to, and filed with, the Administrator. In the event a taxpayer fails, neglects or refuses to file such timely return or form, he or she shall not be entitled to such credits and shall be liable for the full amount of tax assessed by this chapter, together with such interest and penalties, both civil and criminal, as are prescribed in this chapter.
(Ord. 77-116. Passed 8-15-77; Ord. 2004-43. Passed 3-30-04.)