ARTICLE IV. INTEREST AND PENALTIES (3-4-190 et seq.)

3-4-190 Interest on tax debts.

   A.   If a tax ordinance does not impose an interest charge for late payment, underpayment or nonpayment of the tax imposed by the ordinance, then (1) for all periods after December 31, 1991, and on or before December 31, 1999, an interest charge of one and one- quarter percent per month, or fraction thereof shall apply, and (2) for all periods after December 31, 1999, an interest charge of 12 percent per annum simple interest, calculated daily, based on a 365 day calendar year, shall apply.

   B.   Notwithstanding subsection A. of this section, if the department requests and obtains a taxpayer's or tax collector's written consent to extend the time to initiate or complete an audit of the taxpayer's or tax collector's books and records beyond the date when the statute of limitations would run on the department's right to issue a tax determination and assessment, then no interest shall accrue for the period by which the statute of limitations is extended.

   C.   (1)   Notwithstanding subsection A. of this section, if a hearing is held pursuant to Section 3-4-340 in connection with a tax determination and assessment, and a final assessment is not issued within 90 days of the latest of the following:

         (a)   the conclusion of the hearing;

         (b)   the latest date (including extensions) on which any motion, brief or memorandum became due;

         (c)   the latest date on which the protesting party filed any motion, brief or memorandum; or

         (d)   the date on which the transcript of the hearing is delivered to the department, then no interest shall accrue on the tax liability from the end of the applicable 90-day period to the date that the final assessment is issued.

      (2)   During any period that interest is tolled pursuant to this Subsection C., the department of administrative hearings shall transmit to the comptroller on a monthly basis a written report setting forth the status of the administrative law officer's decision.

(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-10-94, p. 59125; Amend Coun. J. 7-10-96, p. 24982; Amend Coun. J. 11-12-97, p. 56813; Amend Coun. J. 4-29-98, p. 66564; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 3-31-04, p. 20916, § 3.5; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

3-4-200 Late penalties.

   A.   If a tax ordinance does not impose a penalty for late filing of a tax return remittance required by the ordinance and the return is not filed within the time or in the manner provided by the ordinance, then a late filing penalty equal to ten percent of the total tax due for the period the return is being filed shall apply; provided, however, that for all periods after December 31, 1999, a late filing penalty equal to five percent shall apply; provided further, however, that for all tax returns due after June 30, 2004, a late filing penalty equal to the greater of the following shall apply: (1) one percent of the total tax due for the applicable return period, up to a maximum penalty of $5,000.00; or (2) five percent of any amount payable with the return. This penalty shall not apply if the failure to file penalty provided by Section 3-4-210 applies or if the late filing penalty provided by Section 3-4-186 E. applies.

   B.   If a tax ordinance does not impose a penalty for late payment or late remittance of the tax imposed by the ordinance and the tax is not paid or remitted within the time provided by the ordinance, then a late payment or remittance penalty equal to ten percent of the tax due and not timely paid or remitted shall apply; provided, however, that for all periods after December 31, 1999, a late payment or remittance penalty equal to five percent shall apply. This penalty shall not apply if a late filing penalty as provided in subsection A. of this section applies.

   C.   If the comptroller determines that the taxpayer or tax collector had reasonable cause for any of the following:

      (1)   paying late;

      (2)   remitting late;

      (3)   underpaying the applicable tax;

      (4)   filing a late or incomplete tax return; or

      (5)   filing a late or incomplete remittance return, then the applicable penalty shall be waived.

(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 1-14-04, p. 16854, § 2; Amend Coun. J. 3-31-04, p. 20916, § 3.6; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

3-4-210 Failure to file penalty.

   If a tax ordinance does not impose a penalty for failure to file a tax return or remittance return required by the ordinance and no return is filed prior to the department issuing a notice of tax deficiency or a notice of tax liability to the taxpayer or tax collector, then a failure to file penalty equal to 25 percent of the total tax due for the applicable reporting period shall apply, unless the comptroller determines that such failure to file a return was due to reasonable cause. This penalty may apply in addition to any late payment or remittance penalty provided by Section 3-4-200 B. of this chapter.

(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)

3-4-220 Negligence or wilfulness penalty.

   A.   If a tax ordinance does not impose a penalty for negligent or wilful failure to pay or remit the tax imposed by the ordinance, then a penalty equal to 25 percent of the tax due and unpaid shall apply if the taxpayer or tax collector negligently or wilfully failed to pay or remit the tax.

   B.   This penalty may apply in addition to any late penalty provided by Section 3-4-200 of this chapter but will not apply if a failure to file penalty as provided by Section 3-4-210 applies.

(Added Coun. J. 11-14-91, p. 7458)

3-4-230 Failure to remit collected taxes penalty.

   A.   If a tax collector (1) knowingly collects any tax imposed by any tax ordinance, and (2) fails to remit the tax collected to the department before the department issues a notice of tax deficiency or notice of tax liability, then a penalty equal to 50 percent of the total tax collected and not remitted shall apply, unless the comptroller determines that such failure to remit collected taxes was due to reasonable cause.

   B.   This penalty may apply in addition to the failure to file penalty provided by Section 3-4-210 or, if the tax collector negligently or wilfully failed to remit the tax, this penalty may apply in addition to the negligence or wilfulness penalty provided by Section 3-4-220.

   C.   For any tax liability to which the failure to remit collected taxes penalty applies, the late penalties provided by Section 3-4-200 shall not apply.

(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)