(A) Every taxpayer domiciled in the municipality who is required to and does pay, or has acknowledged liability for, a municipal tax to another municipal corporation on or measured by the same income that is taxable income under this chapter may claim a nonrefundable credit upon satisfactory evidence of the tax paid to the other municipal corporation. Effective January 1, 2017, resident taxpayers of the city shall receive .50% credit for income tax paid to another municipality from the current 1% income tax due the city. In no event shall the amount of the credit exceed .50% of the income subject to taxation as herein provided and applicable to the allocation of funds as per § 152.013. Effective January 1, 2024, resident taxpayers of the city shall receive 1% credit for income tax paid to another municipality from the effective January 1, 2024, 1.50% income tax due the city. In no event shall the amount of the credit exceed 1% of the income subject to taxation as herein provided and applicable to the allocation of funds as per § 152.013. The January 1, 2024, credit change to 1% applies to income earned after January 1, 2024. The .50% credit continues to apply to income earned between January l, 2024, and December 31, 2023. Subject to division (C) of this section, the credit shall not exceed the tax due the municipality under this chapter.
(B) If tax or withholding is paid on income or wages to a municipal corporation other than the municipality and the municipality also imposes or assesses a tax on that same income or wages after the time period allowed for a refund of the tax or withholding paid to the other municipal corporations, the municipality shall allow a nonrefundable credit, against the tax or withholding to the municipality with respect to such income or wages, equal to the tax or withholding paid to the first municipal corporation with respect to such income or wages.
(1) If the tax rate in the municipality is less than the tax rate in the other municipal corporation, then the credit described herein shall be calculated using the tax rate in effect in the municipality.
(2) If the tax rate in the municipality is greater than the tax rate in the other municipal corporation, the tax due in excess of the credit afforded is to be paid to the municipality of Lebanon, along with any penalty and interest accruing thereto during the period of nonpayment.
(C) The municipality shall grant a credit against its tax on income to a resident of the municipality who works in a county that imposes an income tax, to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation.
(Ord. 2015-112, passed 11-10-15; Am. Ord. 2016-078, passed 8-23-16; Am. Ord. 2021-113, passed 11-23-21; Am. Ord. 2023-116, passed 11-28-2023)