(a) Every individual taxpayer domiciled in City of South Euclid who is required to and does pay, or has acknowledged liability for, a municipal tax to another municipality on or measured by the same income, qualifying wages, commissions, net profits or other compensation taxable under this chapter, may claim a non-refundable credit against the tax imposed by this chapter upon satisfactory evidence that tax has been paid to another municipality. Subject to division (c) of this section, and until such time as it is amended as described in division (e) of this section the credit shall be reduced to 0% of the amount obtained by multiplying the income, qualifying wages, commissions, net profits or other compensation subject to tax in the other municipality by the lower of the tax rate in such other municipality or the rate of 1%.
(b) City of South Euclid shall grant a credit against its tax on income to a resident of City of South Euclid who works in a joint economic development zone created under Ohio R.C. 715.691 or a joint economic development district created under Ohio R.C. 715.70, 715.71, or 715.72 to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation.
(c) 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 division (a) of this section, "the income, qualifying wages, commissions, net profits or other compensation" 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.
(d) Any provision amending Section 172.06 that reduces the income tax credit described herein shall not be passed unless it receives at least five affirmative votes. Any proposed amendment to Section 172.06 shall be posted on the City Website and e-mailed to all people on the City's E-Mail Newsletter Distribution List. Furthermore, City Council shall not change any provision of Section 172.06 without first hosting a series of three public meetings, as determined by City Council.
(e) The tax credit set forth in division (a) of this section shall be increased upon passage by the electors of any new income tax levy generating the same or more revenue as would be provided by an income tax credit of .75 of 1%. Should the electors not pass such a levy, the tax credit reduction in division (a) of this section shall continue. Additionally, the amount of such income tax credit shall be reviewed by Council each November, and may be adjusted should revenues allow.
(Ord. 21-15. Passed 10-26-15; Ord. 31-18. Passed 3-25-19.)