To enact section 718.17 of the Revised Code to require municipal corporations with more than $100 million in annual income tax collections to provide a tax credit to nonresident taxpayers.

Section 1. That section 718.17 of the Revised Code be enacted to read as follows:

Sec. 718.17. (A) As used in this section:

(1) "Nonresident taxpayer" means an individual whose compensation for personal services performed in a municipal corporation is subject to a tax on income imposed by that municipal corporation and who is not domiciled in that municipal corporation at the time the personal services are performed.

(2) "Tax liability" means the municipal income tax liability of an individual taxpayer for the taxpayer's taxable year computed without regard to the credit provided under this section.

(3) "Taxable income" means the measure of an individual taxpayer's income upon which the rate of a municipal corporation's income tax is applied to compute the taxpayer's municipal income tax liability for the taxpayer's taxable year.

(B) This section applies to any municipal corporation that collects taxes on income from all taxpayers, whether individuals or otherwise, in a total amount exceeding one hundred million dollars in any calendar year after 2007. Once applicable, this section continues to apply regardless of the amount of the municipal corporation's annual income tax collections.

Each such municipal corporation shall allow a credit against the tax liability of each nonresident taxpayer. The amount of the credit shall be not less than the greater of the following for the taxpayer's taxable year:

(1) Ten per cent of the nonresident taxpayer's tax liability;

(2) The amount by which the nonresident taxpayer's tax liability exceeds two per cent of the nonresident taxpayer's taxable income.

The credit shall apply to taxable years beginning in the later of 2008 or the calendar year following the first calendar year for which the municipal corporation's income tax collections exceed one hundred million dollars.

If the amount of the credit exceeds the amount of the tax otherwise due after applying all remittances from employer withholding, estimated tax payments, or other payments by or on behalf of the taxpayer, the taxpayer is entitled to a refund of the excess or, upon election of the taxpayer, a credit equal to the excess against the amount due for the following taxable year.