(A) Every individual taxpayer who resides in the City and who receives salaries, wages, commissions or other compensation or net profits from sales made, work done, or services performed or rendered outside of the City, if it is established with supporting documentation that said income is subject to municipal income tax in another municipality, or if it can be demonstrated that said taxpayer has paid a municipal income tax based on income taxable under this chapter, shall be allowed a credit for the amount so paid to such other municipality. The credit shall not exceed 1.25% of the income subject to the tax of such other municipality. The credit shall not be allowed for taxes erroneously paid to another municipality. If it is established that said tax was withheld or paid to another municipality, but that the taxpayer had no legal obligation to pay said tax, no credit for said tax shall be permitted.
(B) A resident of the City who has sustained a net loss arising from a business activity in another municipality shall be subject to the same reduction. Eighty-three percent (83%) of said loss can be used to offset other taxable business income.
(C) No credit shall be given for any tax paid to a school district, county, state or federal taxing authority.
(D) A partial year resident must pro-rate credit for taxes owed and paid to another municipality, reflecting the applicable credit for the income taxed while the taxpayer was a resident of the City.
(E) Effective on January 1, 2018, in addition to the credit allowed by subsection (A), there is allowed an additional credit of 0.25% of the income subject to the tax of such other municipality.
(F) Effective on January 1, 2018, a resident of the City who has sustained a net loss arising from a business activity in another municipality shall be subject to the same reduction. Seventy-five percent (75%) of said loss can be used to offset other taxable business income.
(Ord. 46-2017. Passed 6-19-17.)