161.10 INTEREST AND PENALTIES.

   (a)    All taxes imposed and all monies 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 rate of one and one-half of one percent (1.5%) per month or fraction thereof.

   (b)    In case of taxpayers failing to file their returns when due, and who are not otherwise exempt from the filing requirement, the Tax Administrator may impose a civil penalty up to twenty-five dollars ($25.00) for the first offense and up to one hundred dollars ($100.00) for each subsequent offense in addition to any other penalties which may otherwise be imposed under Section 161.12.

   (c)    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, one and one-half percent (1 ½ %) per month or fraction thereof, or fifteen percent (15%) annually whichever is greater.

      (2)    For failure to remit taxes withheld from employees: five percent (5%) per month or fraction thereof, or fifteen percent (15%) annually whichever is greater.

   (d)    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 final determination of the Federal tax liability.

   (e)    Upon recommendation of the Tax Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Tax Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.

   (f)    Any person required to withhold the tax who knowingly fails to withhold such tax, or 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 to a penalty equal to the total amount of the tax evaded, or 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 taxpayer shall have thirty (30) days after issuance to the taxpayer's last known address of notice of any proposed imposition of interest and penalties within which to file a written protest or explanation. If no protest or explanation is filed within the prescribed time, the interest and penalties shall become the final assessment.

(Ord. 151-1990. Passed 9-24-90.)