(a) Where a resident of the City is subject to a municipal income tax in another municipality, as well as in the City of Vandalia, he or she shall not pay a total Municipal income tax on the same income greater than the tax imposed at the highest rate to which he or she is subject.
(b) Every individual taxpayer who resides in the City who receives net profits, salaries, wages, commissions or other personal service compensation for work done or services performed or rendered outside the City, and who is liable and has paid to another municipality an income tax on the same income taxable and taxed under this chapter, shall be allowed a credit against the tax imposed by this chapter (on the same income to the extent such income is taxed under this chapter) of the amount so paid by him or on his behalf to such other municipality. The credit shall not exceed the Vandalia tax assessed by this chapter on such income earned in such other municipality or municipalities, where such tax is paid. No credit shall be given for county or school district taxes paid, but only for other municipal taxes paid.
(c) The amount of income reported on Federal Schedules C, E, and F, earned in and taxed by a given municipality (as a percentage of total income reported on Federal Schedules C, E, and F, attributable to taxing and non-taxing jurisdictions) shall be used to determine each municipality's contribution to Vandalia net profits taxable income, prior to calculation of the resident City credit for taxes paid to other cities on net profit income. The rate to be used for calculation of this credit shall be the lesser of the resident City tax rate or the appropriate rate at which such income was taxed by such other municipality.
(d) If the total amount of credit granted under this chapter exceeds the total amount of tax due to the City before application of all such credits, then no refund shall be due or payable to the taxpayer.
(Ord. 15-19. Passed 11-16-15.)