HB 1225 Summary

• Individuals employed or with a business in a county other than their residence county must pay county adjusted gross income tax, county option income tax, or county economic development income tax at one-fourth the rate imposed on residents of the employment county.

• Certain county adjusted gross income tax rates and county economic development income tax rates for capital improvements are excluded from the nonresident tax calculation.

• Nonresidents are eligible for a tax credit against their county of residence equal to the amount of tax paid to the county where they work or maintain their business.

• Applies to county taxpayers as defined in IC 6-3.5, with "adjusted gross income" for nonresidents limited to income derived from their principal place of business or employment.

• Effective January 1, 2015, with provisions applying to taxable years and employer remittances made after December 31, 2014.