Reciprocity agreements
Sec. 21. (a) Using procedures provided under this chapter, the
county income tax council of any adopting county may pass an
ordinance to enter into reciprocity agreements with the taxing
authority of any city, town, municipality, county, or other similar
local governmental entity of any other state. The reciprocity
agreements must provide that the income of resident county
taxpayers is exempt from income taxation by the other local
governmental entity to the extent income of the residents of the other
local governmental entity is exempt from the county option income
tax in the adopting county.
(b) A reciprocity agreement adopted under this section may not
become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of any reciprocity agreement
described in this section must be approved by the department.
As added by P.L.44-1984, SEC.14.
Last modified: May 28, 2006