192.081 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY.

   (A)    If a resident of this Municipality is subject to a municipal income tax in another Municipality as well as in this Municipality, he shall not pay a total municipal income tax on the same income greater than the tax imposed at the highest rate to which he is subject.

   (B)   Every individual taxpayer who resides in the resident Municipality, who receives net profits, qualifying wages, commission, or other taxable income for work done, or services performed or rendered outside of the resident Municipality, and who is liable and has paid to another Municipality an income tax on the same income taxable and taxed under this chapter, shall be allowed a credit against the tax imposed by this chapter (on the same income to the extent such income is taxed under this chapter) of the amount so paid by him or on his behalf to such other Municipality. The credit shall not exceed the resident Municipal tax imposed on the income earned in the other Municipality where such tax is paid. The amount of the income reported on federal Schedules C, E, and F, earned in and taxed by a given other Municipality (as a percentage of total income) reported on federal Schedules C, E, and F, attributable to taxing and non-taxing jurisdictions) shall be used to determine each other Municipalities contribution to the net residents Municipal taxable income, prior to calculation of the resident city credit for taxes paid to other Municipalities on net profit income. The rate to be used for calculation of this credit shall be the lesser of the resident Municipal tax rate or the appropriate rate at which such income was taxed by such other Municipality. The resident Municipality credit(s) for taxes paid to another Municipality or other Municipalities on net profit income shall be calculated as follows:

      (1)   Total Income of all Municipalities

         (divided (÷)) by each other Municipal total income

         (equals (=)) other Municipal contribution percentage (%).

      (2)   Municipalities net profit taxable income (in dollars ($))

         (times (X)) other Municipal contribution (percentage (%) from 1 above)

(times (X)) other Municipal tax rate or resident tax rate (whichever is the lesser)

         (equals (=)) allowable other Municipality tax credit.

   (C)   A claim for refund or credit under this section shall be made in such manner as the Tax Administrator may by regulation provide.

(Ord. 2015-11-102. Passed 11-18-15.)