(a) All taxes imposed and all moneys withheld or required to be withheld by employers and all installments or estimated taxes required to be paid under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one-half percent (1/2%) per month or fraction thereof.
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax or installments of estimated tax are hereby imposed as follows:
(1) For failure to pay taxes or estimated taxes due - other than taxes withheld; one and one-half percent (1 1/2%) per month or fraction thereof, but not less than twenty-five dollars ($25.00).
(2) For failure to remit taxes withheld from employees, ten percent (10%) per month or fraction thereof, but accumulated penalty shall not exceed fifty percent (50%) upon any unpaid amount and shall not be less than twenty-five dollars ($25.00).
(c) 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; 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 any amended return is filed and the additional tax is paid within three months after final determination of the federal tax liability.
(d) Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and/or interest, the Board may nevertheless abate penalty or interest, or both.
(Ord. 4-1982. Passed 2-10-82.)
(e) No penalties or interest shall be assessed on estimated payments if the taxpayer has remitted an amount equal to one hundred percent of the previous year’s tax liability, provided that the previous year reflected a twelve-month period, or if 90% of the actual liability has been received.
(Ord. 4-2005. Passed 1-12-05.)
(Ord. 4-2005. Passed 1-12-05.)