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(A) Interest. All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this tax code, remaining unpaid five days after they become due, shall bear interest at the rate of 1% per month.
(B) Penalties. In addition to interest as provided in division (A) of this section, penalties for failure to pay taxes and to withhold and remit taxes pursuant to the provisions of this subchapter 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, a penalty of $25 or 12% of the tax due, whichever is greater, will be imposed.
(2) 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 where he has filed a previous return and has failed to file a declaration on which he has estimated and paid a tax equal to or greater than 90% of the actual tax for the year, or has failed to file a return and paid the total tax on or before the end of the month following the end of the taxable year; 10% of the difference between 90% of the actual tax for the year and the amount paid through withholding and declaration.
(3) (a) In the case of employers, required by § 95.20 to withhold the municipal tax, who fail to withhold or remit such tax to the Tax Administrator, a penalty for each period of delinquency shall be assessed in the amount of $25 or 12% of the tax due which ever is greater.
(b) The percentages herein specified when used shall apply from the first month of delinquency.
(4) No penalty or interest shall be charged against a taxpayer for the late payment or nonpayment of estimated tax liability if the taxpayer is an individual who resides in the municipal corporation but was not domiciled there on January 1 of the current calendar year.
(5) Except in the case of fraud, the penalty shall not exceed 50% of the unpaid tax, with a minimum penalty of $25.
(C) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Tax Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax 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 an amended return is filed and the additional tax is paid within three months after the final determination of the federal tax liability.
(D) Postmarked. Filings, including requests for extensions, must be postmarked by April 15. Employer withholding payments postmarked, or received, through and inclusive of the fifth calendar day of any month may be considered by the Tax Administrator to have been postmarked, or received the last day of the preceding month.
(E) Appeal. Upon an appeal from the refusal of the Tax Administrator to recommend abatement of penalty and interest, the Board of Appeals may abate such penalty or interest, or both.
(Ord. 1-05, passed 1-24-05)