(a) All taxes imposed and all moneys deducted and withheld or required to be deducted and withheld by Employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one and one-half percent (1 ½ %) per month or fraction thereof until paid.
(b) In addition to interest as provided in subsection (a) hereof, the following penalties are hereby imposed as follows:
(1) For failure to pay taxes due, other than those deducted and withheld by an Employer, one and one-half percent (1 ½ %) per month or fraction thereof or five percent (5%) of total tax due, whichever is greater.
(2) For failure to remit taxes deducted and withheld from Employees, five percent (5%) per month or fraction thereof, or ten percent (10%) of the total tax due, whichever is greater.
(3) For failure to file a timely and complete income tax return, fifty dollars ($50) for the first instance and seventy-five dollars ($75) for each subsequent instance.
(c) No penalty shall be assessed on an assessment of additional tax if a return has been filed in good faith and the tax shown thereon paid 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 assessment of additional tax resulting from a federal audit, provided an amended City income tax 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 all or any portion of any penalty or interest or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty or interest, the Board of Review may nevertheless abate all or any portion of any penalty or interest or both.
(e) Any Employer required to deduct and withhold City income tax who knowingly fails to deduct and withhold such tax, or to pay over such tax or 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 for a penalty equal to the total amount of the tax evaded, or not deducted and withheld, or not paid over. Except as provided in subsection (h) hereof, no other penalty shall be applied to any offense to which this penalty is applied.
(Ord. 154-00. Passed 1-8-01.)
(f)
All taxes imposed by this chapter shall be collectible, together with any interest and penalties thereon, by suit as other debts of like amounts are recoverable and the City Director of Law is hereby authorized to bring such legal action as may be required. All delinquent tax accounts outsourced by the City to a law firm or collection agency shall be assessed a collection fee on the entire balance due equal to the contingency collection percentage charged by each law firm or collection agency as set forth in a collection contract or written commitment letter with the City. The balance due prior to the assessment of the collection fee shall be the sum of the principal balance due plus interest, penalties, and permissible charges or fees assessed at, or prior to, the date of referral. The collection fee shall be assessed against all payments made by the taxpayer whether or not the balance due is paid in full with one payment or over time with more than one payment. The assessment of the collection fee shall be made by the law firm or the collection agency after the delinquent account has been outsourced for the collection. Additionally, court costs shall be added to the balance due as they are incurred, but shall not be assessed a collection fee.
(Ord. 68-15. Passed 7-13-15.)
(g) Any person violates this chapter who:
(1) Fails, neglects or refuses to make any return, report or declaration required by this chapter;
(2) Makes an incomplete, false or fraudulent return;
(3) Fails, neglects or refuses to pay the tax, penalties or interest imposed by the Administrator pursuant to this chapter;
(4) Fails, neglects or refuses to deduct and withhold City income tax from Salaries, Wages, Commissions and Other Compensation paid to Employees or to remit such withholdings to the City;
(5) Refuses to permit the Administrator or his delegate or any duly authorized agent or Employee of the City to examine any applicable books, records, papers, State and/or federal income tax returns relating to the income, Net Profits or payroll of a Taxpayer;
(6) Refuses to disclose to the Administrator any information with respect to the income, Net Profits or payroll of a Taxpayer;
(7) Fails to comply with the provisions of this chapter or a subpoena of the Administrator;
(8) Fails, as an individual charged with the responsibility, to deduct and withhold from the Salaries, Wages, Commissions and Other Compensation of Employees or to remit to the City the tax required to be deducted and withheld in accordance with the provisions of this chapter; or
(9) Attempts to do anything whatsoever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter.
(h) Any Person who violates any provisions of subsection (g) hereof will be guilty of a misdemeanor in the first degree and may be assessed such penalties, including fines and/or imprisonment, as are provided for in the Revised Code for first degree misdemeanors.
(i) All prosecutions under this section must be commenced within the period specified in Section 718.12 of the Revised Code, except that in the case of fraud, omission of twenty-five percent (25%) or more of the income required to be reported, or failure to file a return, prosecution may be commenced within six (6) years after the commission of the offense.
(Ord. 154-00. Passed 1-8-01.)