(A) Where a resident of this City is subject to a municipal income tax in another municipality, the resident shall not pay a total municipal income tax on the same income greater than the tax imposed at the highest rate to which the resident is subject.
(B) Every individual taxpayer who resides in the City who receives net profits, pass-through entity income, qualifying wages, commissions, or other compensation for work done or services performed or rendered outside of the City, 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 paid by the taxpayer or on the taxpayer's behalf to such other municipality. The credit shall not exceed the Moraine tax imposed on the income earned in such other municipality(ies) where such tax is paid. No credit shall be given for county or school district taxes paid, but only for other municipal taxes paid.
(C) The amount of income earned in and taxed by a given municipality (as a percentage of total income attributable to all taxing and non-taxing jurisdictions) shall be used to determine each municipality's percentage contribution to Moraine taxable income, prior to calculation of the resident's credit for taxes paid to other municipalities on said income. The rate to be used for calculation of this credit shall be the lesser of the resident's Moraine city tax rate or the rate at which such income was taxed by such other municipality.
The resident's credit(s) for taxes paid to another municipality on net profit income shall be calculated as follows:
Moraine Net Profits Taxable Income $ Amount
x
Other Municipality's Percentage (%) Contribution to Moraine Taxable Income
x
Lesser of Other Municipality's Percentage (%) Tax Rate or Moraine Percentage (%) Tax Rate
= Credit for Taxes Paid to another Municipality
(Ord. 1929-15. Passed 11-12-15.)