A – Taxpayers are allowed credit for tax paid to other municipalities where they work, not to exceed one and three quarter percent (1.75%) of income earned in other municipalities. There is no reciprocal agreement among Cities, and Alliance receives no money from other cities where residents work. Therefore, the City is requiring all taxpayers to pay a portion of tax to Alliance.
EXAMPLE 1. If last year you lived in Alliance and worked in Canton where you earned $10,000, you would have paid Canton $200.00 in tax (2.00% of $10,000). The tax due Alliance is also $200.00 You will be given credit for $175.00 leaving a balance of $25.00 owed to the City of Alliance.
EXAMPLE 2. If last year you lived in Alliance and you worked in Salem where you earned $10,000, you would have paid Salem $100.00 in tax (1.00% of 10,000). The tax due Alliance is $200.00 You will be given a credit for the full $100.00 because the tax rate is less than one and three quarter percent (1.75%), and you will have a balance due of $100.00 to the City of Alliance.