A. Original Delinquency. Any taxpayer who has not been granted an extension of time for filing a return or remittance of tax due and who fails to remit any tax imposed by §§ 3.24.030 et seq. prior to delinquency, shall pay a penalty of 10% of the amount of tax due in addition to the amount of the tax unless the taxpayer shows that the failure to file timely is due to reasonable cause not due to negligence.
B. Continued Delinquency. Any taxpayer who has not been granted an extension of time for filing a return or remittance of tax due, and who failed to pay any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of 15% of the amount of the tax due plus the amount of the tax and the 10% penalty first imposed unless the taxpayer shows that the failure to file timely is due to reasonable cause and not due to negligence.
C. Fraud. If the Collector determines that the failure to file a return or that the nonpayment of any remittance due under §§ 3.24.030 et seq. is due to fraud or intent to evade the provisions thereof, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions A. and B. of this section.
D. Interest. In addition to the penalties imposed, any operator who fails to remit a tax imposed by §§ 3.24.030 et seq. shall pay interest at the rate of 1.5% per month or a fraction thereof, on the amount of the tax due, exclusive of penalties, from the date on which the remittance first became delinquent until paid. Said interest cannot be waived by the Collector.
E. Payment Submitted without Return. A fee, set by resolution, shall be charged should a taxpayer remit a payment without a return unless said return is received by the Collector within 5 business days of receiving the payment.
F. Penalties Merged with Tax. Every penalty and fee imposed and such interest as accrues under provisions of this section shall be merged and become a part of the tax herein required to be paid. Payments shall first be applied to penalties and fees imposed, then to interest accrued, then taxes due.
G. Attorney Fees. In the event it becomes necessary for an enforcement of the provisions of this chapter for the city to incur attorney fees’ expense and cost, the taxpayer shall be assessed that expense and/or cost. It shall be due and owing upon billing and shall bear interest at the rate of 1.5% per month.
H. Imposition of Civil Penalties. An imposition of any civil penalties, interest, fees or costs by this section shall not be a bar for any prosecution under § 3.24.240.
I. The Collector may waive or adjust penalties and fees imposed by divisions A., B., C. and E. above upon a finding that:
1. In the past, the taxpayer has consistently filed and paid the taxes imposed by this chapter in a timely manner;
2. The amount of the penalties or fees are greatly disproportionate to the amount of the tax;
3. The failure of a taxpayer to file a return and/or pay any tax by the due date was caused by any of the following circumstances:
a. The return was timely filed but was inadvertently forwarded to another taxing jurisdiction.
b. Erroneous or insufficient information was furnished the taxpayer by the Collector or their employee or agent.
c. Death or serious illness of the taxpayer, member of his immediate family, or the preparer of the reports immediately prior to the due date.
d. Unavoidable absence of the taxpayer immediately prior to the due date.
e. Destruction by fire or other casualty of the taxpayer's place of business or records.
f. Prior to the due date, the taxpayer made application for proper forms which could not be furnished in sufficient time to permit a timely filing.
g. The taxpayer was in the process of pursuing an active protest of the tax in question in another taxing jurisdiction at the time the tax and/or return was due.
h. The taxpayer establishes through competent evidence that the taxpayer contacted a tax advisor who is competent on the specific tax matter, and after furnishing necessary and relevant information, the taxpayer was incorrectly advised that no tax was owed and/or the filing of a return was not required.
i. The taxpayer has never been audited by a city for the tax or on the issue in question and relied, in good faith, on a state exemption or interpretation.
j. The taxpayer can provide some public record (court case; report in a periodical, professional journal, or publication; etc.) stating that the transaction is not subject to tax.
k. The Oregon Department of Revenue, based upon the same facts and circumstances, abated penalties for the same filing period.
4. A taxpayer may also request a waiver or adjustment of penalty for a reason thought to be equally substantive to those reasons itemized above. All requests for waiver or adjustment of penalty must be in writing and shall contain all pertinent facts and other reliable and substantive evidence to support the request. In all cases, the burden of proof is upon the taxpayer.
J. No request for waiver of penalty under division I. above may be granted unless written request for waiver is received by the Collector within 60 days following the imposition of penalty. Any taxpayer aggrieved by the refusal to grant a waiver under division I. above may appeal under the provisions of § 3.24.250 provided that a petition of appeal or request for an extension is submitted to the Collector within 60 days of the taxpayer's receipt of notice by the city that waiver has been denied.
K. For the purpose of this section, Reasonable Cause shall mean that the taxpayer exercised ordinary business care and prudence, i.e., had a reasonable basis for believing that the tax did not apply to the business activity in this city.
L. For the purpose of this section, Negligence shall be characterized chiefly by inadvertence, thoughtlessness, inattention, or the like, rather than an "honest mistake." Examples of negligence include:
2. Repeated failures to file returns timely; or
3. Gross ignorance of the law.
(Ord. 1081, passed 11-21-2001; Am. Ord. 1391, passed 12-4-2013)