(a) Every individual taxpayer who resides in the City, JEDZ or JEDD who earned, received, accrued or in any other way had set aside unto him net profits, salaries, qualifying wages, commissions, other compensation, or other personal service compensation for work done or services performed or rendered outside the City, JEDZ or JEDD, if it is established with supporting documentation that said income is subject to municipal income tax in another municipality, JEDZ or JEDD and that said tax has been paid to that other municipality, JEDZ or JEDD on the same income taxable under this chapter, shall be allowed a credit against the tax imposed by this chapter of the amount so paid by him or in his behalf to such other municipality, JEDZ or JEDD. The credit shall not exceed 1% of the income subject to tax in another municipality, JEDZ or JEDD and, if that same income taxable to the City, JEDZ or JEDD has been reduced by allowable business net losses, the tax credit paid to the other City, or JEDZ or JEDD will not exceed the amount of income remaining subject to the City, JEDZ or JEDD tax. Tax paid for another City, JEDZ or JEDD cannot be used to offset the City, Newark, JEDZ or JEDD income tax due on other taxable income not subject to tax in that other city. The credit will not be allowed for taxes erroneously paid to another municipality, JEDZ or JEDD. If it is established that said tax was withheld or paid to a municipality, JEDZ or JEDD that the taxpayer had no legal obligation to pay said tax, no credit for said tax will be permitted.
(b) A resident of the City, JEDZ or JEDD who has sustained a net loss arising from a business activity in another municipality shall be subject to the same reduction. The City will reduce a loss derived from a business activity in another taxing jurisdiction not to exceed 57.14% (1% of the 1.75% tax rate) before that 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) Notwithstanding any provision of this chapter to the contrary, a claim for refund or credit under this section shall be made in such manner as Council may by regulation provide.
(e) A partial year resident must pro-rate credit for taxes owed and paid to another municipality, JEDZ or JEDD, reflecting credit for 1% of the income taxed while the taxpayer was a resident of the City, JEDZ or JEDD.
(Ord. 01-52. Passed 11-19-01; Ord. 05-48. Passed 9-6-05; Ord. 09-71. Passed 12-21-09.)