HB 4513 Summary

• Prohibits cities from imposing income tax on nonresident individuals beginning January 1, 2022, unless the city had such a tax in effect on January 1, 1995.

• Establishes December 31, 2021 as the final date for cities to collect income taxes from nonresidents at rates previously authorized (up to 50% of resident rates or specific percentages under various city population thresholds).

• Removes references to nonresident income tax provisions in employer withholding requirements effective January 1, 2022, by limiting withholding obligations to residents only.

• Updates statutory language to replace outdated regulatory references and add gender-neutral pronouns ("or her") throughout relevant sections.

• Applies changes to multiple sections governing city income tax ordinances, including those for large cities (over 600,000 population), smaller municipalities, and those with special circumstances related to lighting authorities.