(a) All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one percent (1%) per month or fraction thereof until paid in full.
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, other than taxes withheld, one percent (1%) per month or fraction thereof, or five percent (5%) of the total tax due, whichever is greater.
(2) For failure to remit taxes withheld from employees, three percent (3%) per month or fraction thereof, or five percent (5%) of the total tax due, whichever is greater.
(3) Where the taxpayer has failed to file a declaration on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year, or has failed to file a declaration on which he has estimated and paid tax equal to or greater than seventy percent (70%) of the actual tax for the year, or has failed to file a final return and pay the total tax on or before the end of the month following the end of his taxable year, ten percent (10%) of the difference between seventy percent (70%) of the actual tax for the year and the amount paid through withholding or declaration.
(4) Except in the case of fraud, the penalty shall not exceed fifty percent (50%) of the unpaid tax.
(c) Exceptions: A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator. Furthermore, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax is paid within three months after the final determination of the federal tax liability.
(d) At the Administrator's discretion, the Administrator may abate up to five thousand dollars ($5,000) of penalty or interest or both, and upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, of a taxpayer who appeals for such abatement under the provisions of Section 181.12 subsequent to a denial of such abatement by the Administrator.
(e) Any person required to withhold the tax who knowingly fails to withhold such tax, or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty equal to the total amount of the tax evaded, or not withheld, or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
(f) Penalty shall not be assessed where an extension has been granted by the Administrator and the final tax paid within the period as extended.
(g) Penalties shall be imposed by the Administrator on those taxpayers failing to file their tax returns when due, and who are not otherwise exempt from filing requirements by virtue of Section 181.03(d), a civil penalty of twenty-five dollars ($25.00) shall be imposed for the first instance and fifty dollars ($50.00) for each subsequent instance.
(Ord. 04-07. Passed 5-21-07.)