(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 applicable federal rate (AFR) short-term annual interest rate, effective on January 1 of each year and as published in the Internal Revenue Bulletin, plus three percentage points.
(B) In addition to interest as provided in division (A) hereof, penalties are hereby imposed as follows:
(1) For failure to file a return or failure to pay taxes due, other than taxes withheld; the penalty shall be:
(a) First offense (provided taxes paid at time of filing) - no penalty; or
(b) Second offense (provided taxes paid at time of filing) - $20; or
(c) More than two offenses (provided taxes paid at time of filing) - $100 and failure to pay taxes due, the greater of:
1. One hundred dollars each occurrence, or
2. Three percent per month or fraction thereof calculated on the remaining unpaid tax balance due (not to exceed amount of tax due).
(2) For failure to withhold and/or remit taxes withheld from employees, a penalty of the higher of:
(a) Thirty dollars; or
(b) Five percent per month or fraction thereof.
(C) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Tax Commissioner when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax Commissioner. Further, 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.
(Ord. 16-1974, passed 3-4-74; Am. Ord. 49-1976, passed 10-18-76; Am. Ord. 50-A-1984, passed 12-3-84; Am. Ord. 01-1998, passed 2-2-98; Am. Ord. 03-1999, passed 2-15-99; Am. Ord. 01-2007, passed 1-16-07)