191.10 INTEREST AND PENALTIES.

   (a)   All taxes imposed and moneys withheld by employers under the provisions of this chapter and remaining unpaid after they have become due shall bear interest, in addition to the amount of the unpaid tax or withholdings, at the rate of one percent (1%) per month or fraction thereof.

   (b)   In addition to the interest as 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: one percent (1%) per month or fraction thereof.

      (2)   For failure to remit taxes withheld from employees: three percent (3%) per month or fraction thereof.

      (3)   Where the taxpayer has failed to file a declaration on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year, or where he has filed a previous return and has failed to file a declaration on which he has estimated and paid a tax equal to or greater than ninety percent (90%) of the actual tax for the year, or has failed to file a return and paid the total tax on or before the end of the month following the end of the taxable year: ten percent (10%) of the difference between ninety percent (90%) of the actual tax for the year and the amount paid through withholding and declaration.

      (4)   Except in the case of fraud, or omission of twenty five percent (25%) or more of income from reporting on any filing, the penalty shall not exceed fifty percent of the unpaid tax.

      (5)   Where the taxpayer has failed to file a return in accordance with Section 191.05: twenty-five dollars ($25.00).

   (c)   Interest, but no penalty, will be charged where an extension has been granted by the Commissioner of Taxation and the final tax paid within the period as extended.

   (d)   Exceptions.   

      (1)   A penalty shall not be assessed on an additional tax assessment made by the Commissioner of Taxation when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Commissioner of Taxation; and in the absence of fraud, penalty shall not be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax and interest is paid within three months after final determination of the federal tax liability.

      (2)   No penalty or interest shall be charged against a taxpayer for the late payment or nonpayment of estimated tax liability if the taxpayer is an individual who resides in the City but was not domiciled there on the first day of January of the tax year being filed.

      (3)   Upon recommendation of the Commissioner of Taxation, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Commission of Taxation to recommend abatement of penalty and interest concerning an item of income or expense, the Board may nevertheless abate penalty or interest, or both.

         (Ord. 2015-11-101. Passed 11-18-15.)