191.071 WORKING AGGRESSIVELY GENERATING EMPLOYMENT (W.A.G.E.) TAX CREDIT.

   (a)    From and after January 1, 1988, each taxpayer that has earnings or profits which are subject to the tax imposed by Section 191.02 and employs within the City one or more persons on a salary, wage, commission or other compensation basis, excluding exempt incomes set forth in Section 191.14, shall be eligible for a credit against that taxpayer's City income tax liability as set forth herein.

   (b)    Each eligible taxpayer shall be entitled to a credit equal to fifty percent (50%) of the personal City income tax liability attributable to new employment or increased employee payroll hours generated by the taxpayer in years following the taxpayer's base year.

   (c)    The base year for any eligible taxpayer in existence as of December 31, 1987, operating on a calendar year basis shall be calendar year 1987 and every third calendar year thereafter. Eligible taxpayers in existence as of December 31, 1987, operating on a fiscal year basis shall have as a base year their last fiscal year ending prior to December 31, 1987, and every third fiscal year thereafter. Eligible taxpayers not in existence as of December 31, 1987, shall have as a base year their first fiscal or calendar year of operation as the case may be, and every third fiscal or calendar year thereafter.

   The base year for any eligible taxpayer annexed into the corporate limits of the City of Mansfield after January 1, 1988, shall be the fiscal or calendar year in which annexation procedures are completed and every third fiscal or calendar year thereafter, as the case may be and any such taxpayer shall not be considered a "new eligible taxpayer" as that term is used in subsection (d) hereof.

   (d)    To be eligible to receive the employment tax credit each taxpayer shall, at the time of filing its base year City income tax return as required by Section 191.04, provide the Finance Director with the total number of employee payroll hours divided by 2,080 which shall establish for the purpose of administering the credit, the total number of employees employed by the taxpayer during its base year. Notwithstanding the foregoing, the total number of employees for new eligible taxpayers, i.e. those eligible taxpayers not in existence as of December 31, 1987, shall be established, for the purpose of administering the credit, at zero employees for the first base year of operation only and any such taxpayer shall be entitled to the credit for that year. Thereafter, the employment level of the first base year shall be recalculated without regard to the rule in the immediately preceding sentence.

   (e) For each tax year following a taxpayer's base year the taxpayer shall calculate total number of employees in the same manner as in subsection (d) hereof. In any tax year in which the taxpayer's total number of employees exceeds the base year level, the taxpayer shall be entitled to an income tax credit for such increased employment levels as set forth in subsection (b) hereof. In any tax year in which a taxpayer claims an employment tax credit, the taxpayer shall furnish, to the City Income Tax Division on forms provided by the Finance Director, calculations substantiating entitlement to the credit.

(Ord. 04-253. Passed 12-21-04.)