OH SB208

Applies to municipal corporations that collect more than $100 million in annual income tax from all taxpayers in any calendar year after 2009, and continues to apply regardless of future collection amounts.

Requires affected municipalities to provide a tax credit to nonresident taxpayers (individuals not domiciled in the municipality but earning compensation subject to its income tax) for taxable years beginning in 2013 or the year following when collections first exceed $100 million.

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

If the credit exceeds taxes owed after accounting for withholding and estimated payments, the taxpayer receives a refund or may elect to carry forward the excess as a credit against the following year's tax liability.

Defines key terms: "nonresident taxpayer," "tax liability," and "taxable income" for purposes of calculating and applying the credit.