(A) Except as provided in division (C) of this section, all taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they have become due shall bear interest at the rate of 1.5% per month or fraction thereof.
(B) In addition to interest as provided in division (A) of this section, penalties are hereby imposed as follows:
(1) For failure to pay taxes due (other than taxes withheld), 1.5% per month, or fraction thereof, or $25, whichever is greater;
(2) (a) For failure to remit taxes withheld from employees, 10% per month, or fraction thereof, up to a maximum of 100% of the tax due, or $25, whichever is greater.
(b) If an employer required to withhold city taxes as required by this chapter fails, neglects or refuses to withhold city taxes from employees, a penalty shall be imposed equal to the sum of the amount of the tax which should have been withheld, plus 10% per month, or fraction thereof, or $25, whichever is greater.
(3) For failure to file an annual return by the due date of such return, a penalty of $25 shall be imposed, even if no tax is shown to be due on such return.
(C) No penalty shall be assessed on additional taxes found to be due as the result of an audit by the City Tax Administrator when a return was timely filed in good faith and the tax paid thereon within the prescribed time.
(D) In the absence of fraud, neither penalty nor interest shall be assessed on any additional taxes resulting from a federal audit for federal income tax purposes; provided that an amended return is filed and the additional tax paid within three months after final determination of the federal tax liability.
(E) The Tax Administrator may abate penalty or interest or both. A taxpayer may appeal to the Board of Review if abatement is refused.
(F) If the taxpayer refuses or neglects to make estimated tax payments as required, the penalty assessed will be 15% of the actual tax liability due the city. If the taxpayer makes estimated tax payments, but the total amount paid is less than 80% of the actual tax liability, the penalty assessed will be 15% of the difference between 80% of the actual tax liability and the amount paid.
(G) If penalty and interest charges have been assessed according to this section, all payments made will first be applied towards such assessment and then towards the amount of tax due.
(Prior Code, § 880A.10) (Ord. 92-11, passed 7-1-1991)