(A) Income tax that has been deposited or paid to the City, but should have been deposited or paid to another municipal corporation, is allowable by the City as a refund, but is subject to the three-year limitation on refunds as provided in Section 196.096 of this Chapter.
(B) Income tax that should have been deposited or paid to the City, but was deposited or paid to another municipal corporation, shall be subject to collection and recovery by the City. To the extent a refund of such tax or withholding is barred by the limitation on refunds as provided in section 196.096, the City will allow a non-refundable credit equal to the tax or withholding paid to the other municipality against the income tax the City claims is due. If the City’s tax rate is higher, the tax representing the net difference of the tax rates is also subject to collection by the City, along with any penalty and interest accruing during the period of nonpayment.
(C) No carryforward of credit will be permitted when the overpayment is beyond the three-year limitation for refunding of same as provided in Section 196.096 of this Chapter.
(D) Nothing in this section requires a City to allow credit for tax paid to another municipal corporation if the City has reduced credit for tax paid to another municipal corporation. Section 196.081 of this Chapter regarding any limitation on credit shall prevail.