OH SB172

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

Applies to municipal corporations collecting taxes exceeding $100 million in any calendar year after 2020, and continues to apply regardless of future collection amounts.

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

Credit applies to taxable years beginning in 2021 or the calendar year following the first year the municipality's income tax collections exceed $100 million.

Excess credits may be refunded to the taxpayer or, at the taxpayer's election, applied as a credit against the following taxable year's liability.