Bill Proposing Non-resident Credit on Municipal Income Taxes

Ohio Senator Tim Schaffer yesterday again  introduced a bill which the Plain Dealer was referring to as a “controversial attempt to reduce the burden on twice-taxed commuters,”  and one he’s  “introduced in various similar forms during the past six general assemblies… all without success.”

SB 208, the Plain Dealer’s article says, “would require large Ohio cities – including Cleveland, Cincinnati, Columbus, Dayton, and Toledo – to offer non-residents an annual tax credit equal to either 10 percent of their liability for the year or the amount by which the tax amount exceeds 2 percent of their taxable income, whichever is greater… Supporters say it’s unfair that such people are assessed income tax both where they work and where they live, while opponents  say the proposal would be a severe financial blow to Cleveland and other large cities who rely on such money to provide needed services.”

Revised Code 718.121, which went into effect in 2004, covers “second municipalities imposing taxes after the time period allowed for refund."