OH SB26

Enacts section 718.17 of the Revised Code to require municipal corporations collecting over $100 million annually in income taxes to provide a tax credit to nonresident taxpayers.

Defines "nonresident taxpayer" as an individual whose compensation for personal services performed in a municipal corporation is subject to that municipality's income tax but who is not domiciled there.

Requires eligible municipalities to allow a credit equal to the greater of: (1) 10% of the nonresident taxpayer's tax liability, or (2) the amount by which the tax liability exceeds 2% of the nonresident taxpayer's taxable income.

Credit applies to taxable years beginning in 2008 or the calendar year following the first year the municipality's income tax collections exceed $100 million, and continues to apply indefinitely once triggered.

Provides that if the credit exceeds taxes otherwise due, the nonresident taxpayer may receive a refund of the excess or elect to apply it as a credit against the following taxable year's liability.