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(a) Interest. 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 interest prescribed by Ohio R.C. 5703.47. Interest shall be allowed and paid on any overpayment by a taxpayer of any municipal income tax obligation from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within 90 days after the final filing date of the annual return, or 90 days after the complete return is filed, or 90 days of filing the application for refund, whichever is later, no interest shall be allowed and paid on the refunded overpayment. For purposes of computing the payment of interest on overpayments, no amount of tax for any taxable year shall be treated as having been paid before the date on which the tax return for that year was due without regard to any extension of time for filing that return. The interest on overpayments shall be paid at the rate of interest prescribed by Ohio R.C. 5703.47.
(b) Penalties. In addition to the interest 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 per annum, but not less than five dollars ($5.00).
(2) For failure to remit taxes withheld for employees: ten percent per month or fraction thereof, but the accumulated penalty shall not exceed fifty percent upon any unpaid amount and shall not be less than five dollars ($5.00).
(c) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator. Further, in the absence of fraud, a penalty shall not be assessed on any additional tax assessment resulting from a Federal audit, provided that an amended return is filed and the additional tax, if any, is paid within three months after final determination of the Federal tax liability. Interest on any additional tax due will be assessed from the original due date of the return at the rate of six percent per annum. Interest will be paid on any overpayment of tax from the original due date of the return at the rate of six percent per annum.
(d) Abatement. The Administrator hereunder may abate a penalty or interest, or both, for good cause shown, in an amount up to and including five hundred dollars ($500.00).
(Ord. 70-27. Passed 3-16-70; Ord. 71-168. Passed 12-16-71; Ord. 98-158. Passed 7-6-98; Ord. 2010-35. Passed 3-15-10.)