In November 2007, Mason voters approved an amendment to the city’s charter that changed the city’s Tax Ordinance. The change gradually increases the credit for taxes paid to other cities.
In prior years, residents employed in another city that has an earnings tax received a maximum credit of up to fifty percent (50%) of the tax due on the portion of their earnings taxed by the city where employed. For tax year 2007, residents employed in another city that had an earnings tax received a maximum credit of up to sixty-five percent (65%) of the tax due on the portion of their earnings taxed by the city where employed. The maximum credit is 80% of the tax in 2008 and will be 90% of the tax in 2009. In tax year 2010 and beyond, the maximum tax credit will be 100%. You will, however, still be required to file a return.
For example, if your W-2 shows withholding for another city and Box 18 of your W-2 is $36,000*, then your tax is calculated as follows:
Tax Year |
Mason Tax on Income Taxed by Another City
(1%, or a multiplier of .01) |
Tax |
Credit Calculation
(Tax x credit allowance) |
Credit |
Amount Due Mason
(Tax – Credit) |
prior years: |
$36,000 x .01 |
$360 |
$360 x 50 % |
$180 |
$180 |
2007: |
$36,000 x .01 |
$360 |
$360 x 65 % |
$234 |
$126 |
2008: |
$36,000 x .01 |
$360 |
$360 x 80 % |
$288 |
$72 |
2009: |
$36,000 x .01 |
$360 |
$360 x 90 % |
$324 |
$36 |
2010: |
$36,000 x .01 |
$360 |
$360 x 100 % |
$360 |
$0 |
*Box 18 cannot exceed the amount in Box 5
More information is included in your 2008 City of Mason income tax packet, which was mailed to you in January 2009. Click here for tax forms or call the Mason Tax Office at 513-229-8535.
Last updated February 10, 2009
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