Thanks and after more digging it appears that this is now becoming the norm for even more than bedroom communities.

@sbaltzer You did not mention where you live and work.  The situation you describe is entirely possible.  I prepare a tax return every year for a relative in Ohio who works in an Ohio town that has a 1% income tax that is withheld from his pay; he lives in a town that has a 2% income tax. The town he lives in gives credit for the 1% he paid already, and he ends up paying 1% to the town where he lives. He pays it quarterly to avoid a big bill at tax time.

Thanks @xmasbaby0 , I live in Beach City, OH (1%) and Work in Dover, OH (1.5%).  I have also dug a little deeper and found that other municipalities are doing the same double taxing also so now I just have to plan for that additional .5% to pay next year.