Tax rates; income subject to tax

Sec. 2. (a) Effective January 1, 2017, the local income tax (LIT) is imposed on residents and nonresidents at the same rate.

(b) Prior to January 1, 2017:

(1) if a county has a county adjusted gross income tax, the nonresident rate is twenty-five hundredths percent (0.25%);

(2) if a county has a county option income tax, the nonresident rate is twenty-five percent (25%) of the rate imposed on residents;

and

(3) if a county has a county economic development income tax, the nonresident rate is the same rate imposed on

residents.

If a county has a combination of subdivisions (1) and (3) or subdivisions (2) and (3), the resident rates and nonresident rates for each tax type

are added together to determine the aggregate resident and nonresident tax rates.