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S. B. No. 145 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
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 2009. 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 2011 or the calendar year following the first calendar
year in 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.
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