OH SB206

Requires municipal corporations collecting more than $100 million annually in income taxes to provide a tax credit to nonresident taxpayers (individuals working in the municipality but not domiciled there).

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

Credit applies to taxable years beginning in 2019 or the calendar year following the first year the municipality's income tax collections exceed $100 million; once applicable, the requirement continues regardless of future collection amounts.

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