(a) Credit for Income Tax Paid to Another Municipality.
(1) Every individual taxpayer domiciled in the City of Xenia 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 nonrefundable credit upon satisfactory evidence of the tax paid to the other municipality. Subject to division (a)(2) of this section, the credit shall not exceed one hundred percent (100%) 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 one and one-half percent (1.5%).
(2) 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 the purposes of division (a)(1) 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.
(3) The City shall grant a credit against its tax on income to a resident of the City who works in a joint economic development zone created under ORC 715.691 or a joint economic development district (JEDD) created under ORC 715.70, 715.71 or 715.72 to the same extent that it grants a credit against its tax on income to residents who are employed in another municipality, with the exception of the Xenia Township - City of Xenia JEDD-1 tax. Credit for taxes paid to the Xenia Township - City of Xenia JEDD-1 shall not exceed two and one-quarter percent (2.25%) of the income taxed by the Xenia Township - City of Xenia JEDD-1.
(Statutory Reference: ORC 718.16)
(b) Credit for Tax Imposed After Time Allowed for a Refund Paid to Other Municipality.
(1) Subject to division (b)(2) of this section, income tax or withholding on income or wages that is due to the City but was paid to another municipality shall be subject to collection and recovery by the City. If City imposes the tax after the time period allowed for a refund of the tax or withholding from the other municipality to which it was paid, the City shall allow a nonrefundable credit against the tax or withholding the City claims is due with respect to such income or wages, equal to the tax or withholding paid to the other municipality.
(2) If the City's tax rate is less than the tax rate of the other municipality, then the nonrefundable credit described in division (b)(1) of this section shall be calculated using the City's tax rate. If the City's tax rate is greater than the tax rate of the other municipality, the tax due in excess of the nonrefundable credit is to be paid to the City, along with any penalty and interest that accrued during the period of nonpayment.
(Source: ORC 718.121)
(c) No Carryforward. Nothing in this section permits any credit carryforward.
(Ord. 15-33. Adopted 07/23/15; Ord. 2018-08. Adopted 02/22/18; Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)