Bill Text: OH SB145 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To require municipal corporations with more than $100 million in annual income tax collections to provide a tax credit to nonresident taxpayers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-04-12 - To Ways & Means & Economic Development [SB145 Detail]

Download: Ohio-2011-SB145-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 145

Senator Schaffer 

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A BILL

To enact section 718.17 of the Revised Code to

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require municipal corporations with more than $100

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million in annual income tax collections to

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provide a tax credit to nonresident taxpayers.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 718.17 of the Revised Code be enacted	5
to read as follows:	6

Sec. 718.17. (A) As used in this section:

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(1) "Nonresident taxpayer" means an individual whose	8
compensation for personal services performed in a municipal	9
corporation is subject to a tax on income imposed by that	10
municipal corporation and who is not domiciled in that municipal	11
corporation at the time the personal services are performed.	12

(2) "Tax liability" means the municipal income tax liability	13
of an individual taxpayer for the taxpayer's taxable year computed	14
without regard to the credit provided under this section.	15

(3) "Taxable income" means the measure of an individual	16
taxpayer's income upon which the rate of a municipal corporation's	17
income tax is applied to compute the taxpayer's municipal income	18
tax liability for the taxpayer's taxable year.	19

(B) This section applies to any municipal corporation that	20
collects taxes on income from all taxpayers, whether individuals	21
or otherwise, in a total amount exceeding one hundred million	22
dollars in any calendar year after 2009. Once applicable, this	23
section continues to apply regardless of the amount of the	24
municipal corporation's annual income tax collections.	25

Each such municipal corporation shall allow a credit against	26
the tax liability of each nonresident taxpayer. The amount of the	27
credit shall be not less than the greater of the following for the	28
taxpayer's taxable year:	29

(1) Ten per cent of the nonresident taxpayer's tax liability;

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(2) The amount by which the nonresident taxpayer's tax	31
liability exceeds two per cent of the nonresident taxpayer's	32
taxable income.	33

The credit shall apply to taxable years beginning in the	34
later of 2011 or the calendar year following the first calendar	35
year in which the municipal corporation's income tax collections	36
exceed one hundred million dollars.	37

If the amount of the credit exceeds the amount of the tax	38
otherwise due after applying all remittances from employer	39
withholding, estimated tax payments, or other payments by or on	40
behalf of the taxpayer, the taxpayer is entitled to a refund of	41
the excess or, upon election of the taxpayer, a credit equal to	42
the excess against the amount due for the following taxable year.	43