172.081 CREDIT FOR MUNICIPAL INCOME TAX PAID.
(A) Resident Individual.
(1) An individual taxpayer who resides in the municipality, and earns qualifying wages for work done or services performed or rendered in any municipal corporation, shall be allowed a credit in the amount of municipal income tax paid on the same income (i.e. on each dollar taxed) by or on behalf of that individual if it is demonstrated that a municipal income tax has been so paid. Such credit shall be allowed only to the extent of the tax levied by this chapter.
(2) An individual taxpayer who resides in the municipality, and receives or wins prizes, awards, sweepstakes, and other income associated with any lottery winnings, gambling and sports winnings, or other similar games of chance in any municipal corporation shall be allowed a credit in the amount of municipal income tax paid on the same income (i.e. on each dollar taxed) by or on behalf of that individual if it is demonstrated that a municipal income tax has been so paid. Such credit shall be allowed only to the extent of the tax levied by this chapter.
(3) A resident individual with income from an ownership interest in one or more pass-through entities, activities of a sole proprietor, or rental activities, after the deduction of distributable losses from other pass-through entities or business activities not utilized as a net operating loss carry-forward in any municipal taxing jurisdiction after January 1, 2018 shall be allowed a non-refundable credit for the amount so paid on the same income (i.e. on each dollar taxed) by or on behalf of the resident individual in such other municipal corporation only to the extent of the tax levied by this chapter.
(4) The credit for tax paid by a resident individual for salaries or wages earned in a non-resident municipal corporation is limited to the tax that is paid on the same income (i.e. on each dollar taxed) after all allowable 2106 expenses have been deducted and shall not exceed the tax established by this chapter.
(5) If the amount of tax withheld or paid to the other municipality is less than the amount of tax required to be withheld or paid to the other municipality, then for purposes of this division, the income subject to tax in the other municipality shall be limited to the amount computed by dividing the tax withheld or paid to the other municipality by the tax rate for that municipality.
(6) No credit shall be given to a resident individual for any county or school district income tax.
(B) Non-resident individual.
(1) Every individual taxpayer who is a non-resident of the municipality who earned qualifying wages for work done or services performed or rendered in the municipality, shall be allowed a credit for the amount so paid if it is demonstrated that a municipal income tax has been paid by or on behalf of that individual to the municipality. Such credit shall be applied only to the extent of the tax levied by this chapter.
(2) A non-resident individual with ownership interest in one or more pass-through entities taxed at the entity level shall not report said income or losses on a non-resident individual annual return and shall not be allowed any credit for taxes paid on their behalf by the pass-through entity to any municipal corporation.
(3) No credit shall be given to a non-resident individual for any county or school district income tax. (Ord. 2019-45-E. Passed 6-18-19.)