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(a) All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the Federal short-term rate as defined in Ohio R.C. 5703.47, plus three percent per month or fraction thereof. (Ord. 12-96. Passed 12-16-96.)
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, other than taxes withheld: ten percent during the first six months, and an additional one and one-half percent per month or fraction thereof.
(2) For failure to remit taxes withheld from employees: three percent per month or fraction thereof, or ten percent, whichever is greater.
(3) When the taxpayer has failed to file a declaration on which he or she has estimated and paid a tax equal to or greater than the tax paid for the previous year, or has failed to file a declaration on which he or she has estimated and paid tax equal to or greater than ninety percent of the actual tax for the year, or has failed to file a final return and pay the total tax on or before the end of the month following the end of his or her taxable year: ten percent of the difference between ninety percent of the actual tax for the year and the amount paid through withholding or declaration.
Except in the case of fraud, the penalty shall not exceed fifty percent of the unpaid tax.
(c) A penalty shall not be assessed on an additional tax assessment made by the Superintendent when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Superintendent. Further, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal audit, provided that an 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 Superintendent, the Board of Adjudication may abate penalty or interest, or both.
(e) In no case shall penalty and interest charges be levied when the total of such penalty and interest amounts to less than ten dollars ($10.00).
(f) Any person required to withhold the tax who knowingly fails to withhold such tax or pay over such tax, or who knowingly attempts in any manner to evade or defeat such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, not withheld or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
(g) A penalty shall be assessed for the failure to file tax returns, informational reports or any other filing as required by this section. If the required filing is not more than 120 days late, the penalty assessed shall be twenty-five dollars ($25.00). If the required filing is more than 120 days late, the penalty assessed shall be fifty dollars ($50.00). Filings shall be deemed timely if postmarked by the due date.
(h) Penalty and interest will not be assessed for failure to pay estimated tax against an individual who resides in the City but was not domiciled here on the first day of January of the current year.
(Ord. 30-70. Passed 7-13-70; Ord. 1-97. Passed 2-17-97; Ord. 9-04. Passed 7-19-04; Ord. 12-10. Passed 7-19-10.)