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| To enact section 718.17 of the Revised Code to | 1 |
| require municipal corporations with more than $100 | 2 |
| million in annual income tax collections to | 3 |
| provide a tax credit to nonresident taxpayers. | 4 |
| Section 1. That section 718.17 of the Revised Code be enacted | 5 |
| to read as follows: | 6 |
| Sec. 718.17. (A) As used in this section: | 7 |
| (1) "Nonresident taxpayer" means an individual whose | 8 |
| compensation for personal services performed in a municipal | 9 |
| corporation is subject to a tax on income imposed by that | 10 |
| municipal corporation and who is not domiciled in that municipal | 11 |
| corporation at the time the personal services are performed. | 12 |
| (2) "Tax liability" means the municipal income tax liability | 13 |
| of an individual taxpayer for the taxpayer's taxable year computed | 14 |
| without regard to the credit provided under this section. | 15 |
| (3) "Taxable income" means the measure of an individual | 16 |
| taxpayer's income upon which the rate of a municipal corporation's | 17 |
| income tax is applied to compute the taxpayer's municipal income | 18 |
| tax liability for the taxpayer's taxable year. | 19 |
| (B) This section applies to any municipal corporation that | 20 |
| collects taxes on income from all taxpayers, whether individuals | 21 |
| or otherwise, in a total amount exceeding one hundred million | 22 |
| dollars in any calendar year after 2009. Once applicable, this | 23 |
| section continues to apply regardless of the amount of the | 24 |
| municipal corporation's annual income tax collections. | 25 |
| Each such municipal corporation shall allow a credit against | 26 |
| the tax liability of each nonresident taxpayer. The amount of the | 27 |
| credit shall be not less than the greater of the following for the | 28 |
| taxpayer's taxable year: | 29 |
| (1) Ten per cent of the nonresident taxpayer's tax liability; | 30 |
| (2) The amount by which the nonresident taxpayer's tax | 31 |
| liability exceeds two per cent of the nonresident taxpayer's | 32 |
| taxable income. | 33 |
| The credit shall apply to taxable years beginning in the | 34 |
| later of 2011 or the calendar year following the first calendar | 35 |
| year in which the municipal corporation's income tax collections | 36 |
| exceed one hundred million dollars. | 37 |
| If the amount of the credit exceeds the amount of the tax | 38 |
| otherwise due after applying all remittances from employer | 39 |
| withholding, estimated tax payments, or other payments by or on | 40 |
| behalf of the taxpayer, the taxpayer is entitled to a refund of | 41 |
| the excess or, upon election of the taxpayer, a credit equal to | 42 |
| the excess against the amount due for the following taxable year. | 43 |