(a) Interest. All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this chapter, remaining unpaid after they become due, shall bear interest at the rate of 1% per month.
(b) Penalties. In addition to interest as provided in subsection (a) hereof, penalties for failure to file tax returns in a timely manner, failure to pay taxes and to withhold and remit taxes pursuant to the provisions of this chapter are hereby imposed as follows:
(1) In the case of taxpayers failing to file a return required by this chapter within the time frames set forth herein, and including any lawfully permitted extensions, the taxpayer shall pay a penalty of $25.00 upon a first offense, $50.00 upon a second offense, $100.00 upon a third offense and $150.00 upon a fourth or any subsequent offense.
(2) In the case of taxpayers failing to pay the full amount of tax due, a penalty as follows:
A. A penalty of 1% per month, or fraction thereof, of the amount of the unpaid tax, if the tax is paid during the first six months after the tax became due;
B. A penalty of 2% per month, or fraction thereof, of the amount of the unpaid tax, if the tax is paid during the seventh and twelfth month after the tax became due; and
C. A penalty of 4% per month, or fraction thereof, of the amount of the unpaid tax, if the tax is paid later than 12 months after it became due. The percentages herein specified, when used, shall apply from the first month of delinquency.
(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; and provided 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 final determination of the federal tax liability.
(d) Abatement by Board of Review. No abatement or reduction in any penalty or interest imposed under this chapter shall be made unless by the Board of Review and pursuant to the provisions of Section 151.13
of this Code. An appeal seeking an abatement or reduction in any penalty or interest shall be taken within 30 days from the imposition of such penalty or interest and the Board shall, upon hearing, have jurisdiction to afffirm, reverse or modify any such imposition of penalty or interest, or any part thereof.
(Ord. 2005-2. Passed 3-28-05.)