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A. Delinquent Dates: Unless otherwise specifically provided for in other provisions of this article, all Business Taxes required to be paid thereby shall be deemed delinquent if not received on or before the close of business thirty (30) calendar days after the date the tax first became due.
1. Initial Delinquency: Any person who fails to pay the required tax by the date stated in subsection A of this section shall pay a penalty on the first calendar day of the first day that the tax is delinquent and on each subsequent calendar day, equal to one percent (1%) of the tax due, or unpaid portion thereof; provided, however, the amount of such penalty to be added for the first thirty (30) calendar days of delinquency shall in no event exceed ten percent (10%) of the amount of the tax due.
2. Continuing Delinquency: Any person who fails to pay any delinquent tax, penalties and interest due on or before the first calendar day of the second thirty (30) calendar day period that the tax is due shall pay a penalty of ten percent (10%) of the tax due, or unpaid portion thereof and on the first calendar day of each subsequent thirty (30) calendar day period shall pay a penalty of ten percent (10%) of the tax due, or unpaid portion thereof; provided, however, the amount of all initial delinquency and continuing delinquency penalties to be added shall in no event exceed fifty percent (50%) of the amount of the total tax due.
3. Reduction Or Elimination Of Penalties: Notwithstanding anything contained in this subsection B, any person that is obligated to pay a penalty as a result of a delinquency in the payment of taxes, penalties or interest, as provided in subsection B1 or B2 of this section may apply to the Director of Finance for a reduction or elimination of such penalty or penalties. The Director shall grant a reduction or elimination of such penalty or penalties as provided below only if the Director determines that the person meets one of the following criteria:
a. The person has voluntarily reported the delinquency that was not otherwise previously known or discovered by the City and has paid the total sum of delinquent taxes and interest due under subsection D of this section within thirty (30) days after issuance by the City of an audit report calculating such sum. The voluntary report of delinquency shall be made upon forms and pursuant to procedures to be promulgated by the Director of Finance; or
b. The person's delinquency was discovered other than by a voluntary report as provided in subsection B3a of this section, but the person nonetheless has paid the total sum of delinquent taxes, penalties and interest due under subsection D of this section within thirty (30) days after issuance by the City of an audit report calculating such sum.
If the Director determines that the person has met the criterion set forth in subsection B3a of this section, then the penalty or penalties otherwise due for such delinquency shall be eliminated. If the Director determines that the person has met the criterion set forth in subsection B3b of this section, then the penalty or penalties otherwise due for such delinquency shall be limited to ten percent (10%) of the amount of the total tax due.
No person shall be entitled to elimination or reduction of any penalty unless timely payment of taxes, interest and any applicable penalties shall be made as provided in this section. The failure to make a timely payment as provided in this section or the taking of any other action to otherwise contest the results of the City's audit report shall constitute a complete waiver of any right to seek reduction or elimination of any penalty pursuant to this section. This subsection B3 shall not apply to any delinquency after that delinquency becomes the subject of an assessment of Business Taxes.
C. Overpayment: For the purposes of allowing overpayments as credit against underpayments of the aforementioned taxes, whenever such overpayment has been received by the City within the three (3) years preceding the current tax year, or during any year for which the taxpayer, at the request of the Director of Finance Administration, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for Business, Sales or Use Taxes, the Director of Finance Administration, when making determinations of the amount of taxes due the City, shall make an allowance of credit for any such overpayments. Whenever an overpayment has been made prior to an underpayment, no penalty or interest shall apply upon the amount of the underpayment satisfied by the prior overpayment.
D. Interest: In addition to the penalties imposed, any person who fails to pay any tax required to be paid by this article shall pay interest at the rate of one and one-half percent (1.50%) per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the tax first became delinquent until paid. Interest shall run during any period of time for which an extension of time has been granted by the Director of Finance Administration. Interest required by any of the provisions of this section shall not be subject to waiver or compromise other than as the Council may direct.
E. Penalties And Interest Merged With Tax: Except for the purposes of calculation of interest and penalties, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.
F. Audits: Nothing in this article or this section shall obligate the City or the Director of Finance to conduct any audit, including, without limitation, an audit pursuant to section 3-1-212 of this chapter, as a prerequisite to any assessment or enforcement of the tax, penalty or interest obligations in this article. (Ord. 96-O-2255, eff. 3-22-1996; amd. Ord. 10-O-2580, eff. 5-23-2010; Ord. 18-O-2750, eff. 4-6-2018)