No, the credit for tax paid to other cities remains the same. You will still receive credit for one half of the tax correctly paid to the other city, with a maximum of 1%. So, if you work in a city with a tax rate of less than 2%, you will receive credit for one half of what you paid to that city. If the other city has a tax rate of 2% or more, you will receive a credit of 1%. For income earned through June 30, 2017, you will owe the difference up to 2% to Springfield, For income earned July 1, 2017, you will owe the difference up to 2.4% to Springfield.
You will need to amend your 2017 declaration of estimated tax and increase the tax due on Quarters 3 and 4 to 2.4%. Overall, your estimated payments should be 2.2% of your estimated income.
You will file your 2017 Springfield Income Tax Return using a blended rate of 2.2% for your total taxable income. This is half the year at 2% and half the year at 2.4%.
The new tax rate is an increase from 2% to 2.4%. The effective date is July 1, 2017. The new rate of 2.4% will affect all income earned from July 1, 2017 and forward. It is a temporary increase which expires December 31, 2022.
All residents of Springfield that are 18 or older are required to file a return each year. If you became 18 years of age during the year, you must file a pay on the amount of wages you earned after your 18th birthday. All non-residents are required to file if they performed work or services within the city and had earnings which were not withheld upon. Additionally, each business located or performing services within the city is required to file. Returns are required with no regard for the amount of income received or losses incurred.