(a) If a resident of New London is subject to and has paid a municipal income tax due to the operation of a business or the receipt of compensation in another taxing municipality in Ohio, such taxpayer shall be allowed a credit against the New London tax due for the taxes accrued and paid to the other municipality based upon a tax rate of one percent (1.00%) of income only (it being the intention of Council that there will be no reciprocity credit for the additional fifty hundredths (.50%) of one percent income tax effective on January 1, 2011 or any renewal thereof), but such credit shall not exceed the amount of New London tax levied on such compensation or from the profits of a business, nor shall such credit or allowance be permitted for a school district tax.
(b) If a resident of New London operates a business or businesses in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used to reduce the taxpayer's New London tax base.
(c) With respect to any income tax applicable to a "pass-through entity" as that term is defined in Ohio R.C. 718.01, the Village of New London shall grant a credit to taxpayers that are domiciled in the Village of New London for taxes paid to another municipal corporation by a pass-through entity that does not conduct business in the Village. The amount of the credit shall equal the lesser of the following amounts:
(1) The amount, if any, of tax paid by the pass-through entity to another municipal corporation in this State, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity;
(2) The amount of tax that would be imposed on the pass-through entity by the Village of New London if the pass-through entity conducted business in the Village, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity.
(d) A refundable credit shall be allowed against the income tax imposed by this chapter for each "qualifying loss," as the same is defined and limited by Ohio R.C. 718.021, in connection with a nonqualified deferred compensation plan, which qualifying loss is sustained by a taxpayer during the taxable year.
(e) (1) Except as provided in subsection (e)(2) hereof, if tax or withholding is paid to a municipal corporation on income or wages, and if New London imposes a tax on that income or wages after the time period allowed for a refund of the tax or withholding paid to the first municipal corporation, New London shall allow a nonrefundable credit, against the tax or withholding paid to the first municipal corporation with respect to such income or wages.
(2) If the tax rate in New London is less than the tax rate in the first municipal corporation, then the credit described in subsection (e)(1) hereof shall be calculated using the tax rate in effect in New London.
(3) Nothing in this section permits any credit carry forward.
(Ord. 2015-18. Passed 11-23-15.)