181.10 INTEREST AND PENALTIES.

   (a)   All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this Tax Code and remaining unpaid five (5) days after they become due shall bear interest on the amount of the unpaid tax at the rate of twelve percent per year.

   (b)   In addition to interest as provided in subsection (a) hereof, penalties are hereby imposed as follows based on the tax remaining unpaid after it becomes due:

      (1)   For failure to pay taxes due, other than taxes withheld, ten percent (10%) of the tax due, or twenty-five dollars ($25.00), whichever is greater.

      (2)   For failure to remit taxes withheld or required to be withheld from employees; ten percent (10%) of the tax due, or twenty-five dollars ($25.00), whichever is greater.

      (3)   Where the taxpayer has failed to file a return by the due date or by the date resulting from extension, twenty-five dollars ($25.00).

      (4)   Except in the case of fraud, the penalty shall not exceed fifty percent (50%) of the unpaid tax.

   (c)   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 (3) months after the final determination of the federal tax liability.

   (d)   Computed penalties of less than five dollars ($5.00) for a first violation shall not be assessed. However, notification to the taxpayer of a first time violation will be made.

   (e)   Upon an appeal from the refusal of the Tax Administrator to recommend abatement of penalty and interest concerning an item of income or expense, the Board may nevertheless abate penalty or interest, or both.

   (f)   If a check used to pay any tax obligation or associated penalty or interest is returned due to insufficient funds, then the taxpayer shall be assessed an additional penalty of twenty-five dollars ($25.00). Said penalty shall be in addition to any other assessments provided for herein.

(Ord. 36-05. Passed 9-19-05.)