181.14 REDUCED TAX CREDIT TO RESIDENTS.

   (a)   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 income tax paid on such taxable income to such other municipality, equal to one hundred percent (100%) of the amount obtained by multiplying the lower of the tax rate of such other municipality or of the City by the taxable income earned in or attributable to the municipality of employment or business activity. Such credit shall not exceed two percent (2%), or the rate of tax currently in effect in the City, whichever is less, for the amount so paid by or on behalf of the resident in such other municipality. For the purposes of this section, taxable income shall include the distributive share of net profits of a resident partner or owner of an unincorporated business entity.

(Ord. 64-2010. Passed 7-22-10.)

   (b)   Method of applying for credit:

      (1)   No credit will be given unless the taxpayer claims such on his final return or other form prescribed by the Administrator, and presents such evidence of the payment of a similar tax to another municipality, as the Administrator may require.

      (2)   A statement satisfactory to the Administrator from the taxing authority of the municipality to which the taxes are paid that a City resident or his employer is paying the tax shall be considered as fulfilling the requirement of this section.

      (3)   Each W-2 must be calculated separately.

      (4)   If W-2 has more than one locality in which tax was withheld, each locality must be calculated separately.

      (5)   2106 expenses will be allowed only if Federal Form Schedule A is attached, and complies with Internal Revenue Service Regulations.

      (6)   Time out of City claims are to be filed on the City form and must be completed in its entirety. Time out of City will only be credited when the duration exceeds twelve (12) days, in a calendar year, in another municipality, or proof of filing taxes to that municipality is supplied. Vacation, holiday, sick days, seminars or conventions are not considered time out of City. (Ord. 94-2002. Passed 1-9-03.)