2023-143 Ordinance - Laserfiche WebLink

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share of the net profit or loss of only pass-through entities owned directly or indirectly by the nonresident. (C) For residents and nonresidents, income can be reduced to "Municipal Taxable Income' as defined in Section 1501.02 (C)(21). Exemptions which may apply are specified in Section 1501.02 (C)(12). Refundable credit for Nonqualified Deferred Compensation Plan. (D) (1) As used in this division: (a) "Nonqualified deferred compensation plan' means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code. (b) "Qualifying loss" means the amount of compensation attributable to a taxpayer's nonqualified deferred compensation plan, less the receipt of money and property attributable to distributions from the nonqualified deferred compensation plan. Full loss is sustained if no distribution of money and property is made by the nonqualified deferred compensation plan. The taxpayer sustains a qualifying loss only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan. (c) (i) "Qualifying tax rate' means the applicable tax rate for the taxable year for the which the taxpayer paid income tax to the City with respect to any portion of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan. (ii) If different tax rates applied for different taxable years, then the "qualifying tax rate' is a weighted average of those different tax rates. The weighted average shall be based upon the tax paid to the City each year with respect to the nonqualified deferred compensation plan. (d) "Refundable credit" means the amount of City income tax that was paid on the non -distributed portion, if any, of a nonqualified deferred compensation plan. (2) If, in addition to the City, a taxpayer has paid tax to other municipal corporations with respect to the nonqualified deferred compensation plan, the amount of the credit that a taxpayer may claim from each municipal corporation shall be calculated on the basis of each municipal corporation's proportionate share of the total municipal corporation income tax paid by the taxpayer to all municipal corporations with respect to the nonqualified deferred compensation plan. (3) In no case shall the amount of the credit allowed under this section exceed the cumulative income tax that a taxpayer has paid to the City for all taxable years with respect to the nonqualified deferred compensation plan. (4) The credit allowed under this division is allowed only to the extent the taxpayer's qualifying loss is attributable to: