OH SB145

Enacts section 718.17 of the Revised Code requiring municipalities collecting over $100 million in annual income tax to provide a tax credit to nonresident taxpayers.

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

Credit amount shall be the greater of: (1) 10% of the nonresident taxpayer's tax liability, or (2) the amount by which tax liability exceeds 2% of taxable income.

Credit applies to taxable years beginning in 2011 or the calendar year following the first year the municipality's income tax collections exceed $100 million, whichever is later.

Excess credits beyond tax liability are refundable to the taxpayer or may be credited against the following taxable year at the taxpayer's election.