171.10 INTEREST AND PENALTIES.
   (a)   All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this chapter, remaining unpaid after they become due, shall bear interest at the rate of one per cent (1%) per month.
   (b)   In addition to interest as provided in subsection (a) hereof, penalties for failure to pay taxes and to withhold and remit taxes pursuant to the provisions of this chapter are hereby imposed as follows:
      (1)   In the case of taxpayers failing to file a tax return by the due date or by the date resulting from an extension, and/or failing to pay the full amount of tax due, a penalty of the higher of:
         A.   Twenty-five dollars ($25.00) or
         B.   One per cent (1%) per month or fraction thereof, of the amount of the unpaid tax, if the tax is paid during the first six months after such tax became due; a penalty of two percent (2%) per month, or fraction thereof, of the unpaid tax, if such tax is paid between the seventh and twelfth months after such tax became due; and a penalty of four percent (4%) per month, or fraction thereof, of the amount of the unpaid tax, if such tax is paid later than twelve (12) months after it became due. The percentages herein specified when used shall apply from the first month of delinquency.
      (2)   In the case of employers, required by Section 171.24 to withhold the Municipal tax, who fail to withhold and remit such taxes to the Tax Commissioner, a penalty for each period of delinquency shall be assessed equal to the higher of:
         A.   Twenty-five dollars ($25.00) or
         B.   A calculated amount based on period of delinquency as follows:
            1.   Two percent (2%) per month, or fraction thereof, if paid during the first three months after it is due; or
            2.   Four percent (4%) per month, or fraction thereof, if paid during the fourth to sixth month after it is due; or
            3.   Five percent (5%) per month, or fraction thereof, if paid later than six months after it is due.
The percentages herein specified when used shall apply from the first month of delinquency.
   (c)   Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Tax Commissioner when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax Commissioner; and provided further that, 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 (3) months after the final determination of the federal tax liability.
   (d)   Filings, including requests for extensions, must be received in the office of the Tax Commissioner by the due date.
   (e)   In the event of a first violation by the taxpayer or a lack of a violation during the preceding three (3) years, the minimum penalty of twenty-five dollars ($25.00) shall not be applied. Penalties shall be computed as provided in Section 171.10 without respect to a minimum.
   (f)   Computed penalties of less than five dollars ($5.00) for a first violation shall not be assessed. However, notification to the taxpayer of a first time violation will be made.
   (g)   Except in the case of fraud, the penalty shall not exceed fifty percent (50%) of the unpaid tax.
   (h)   Upon an appeal from the refusal of the Tax Commissioner to recommend abatement of penalty and interest, the Board of Review may abate such penalty or interest, or both.
(Ord. 2006-70. Passed 12-14-06.)