(A) Interest on past due tax. Any tax not paid over to the city on or before the due date shall earn and be payable with interest at the default interest rate from the date the tax was due until the date the tax is paid over to the city.
(B) Compounding interest. If neither a city return is filed not the tax due for a quarter is paid on or before the applicable due date, then the interest which accrues each month at the default rate shall at the end of the applicable month be deemed to be tax for the purposes of calculating the interest required to be paid by this subchapter (“compound default interest”).
(C) Fraud/misappropriation penalty. If the City Recorder determines that any operator misappropriated tax paid by transients (including by way of example only, commingled tax with the operator’s funds, or applied tax for any purpose except payment of tax over to the city and retention of any collection fee the operator was entitled to); or any operator engaged in any fraud in connection with the required operator records or the city returns (including without limitation intended, knowingly kept incomplete, misleading or false required operator records, or knowingly submitted any incomplete, misleading or false city return); then, in either of the foregoing circumstances, the city shall be entitled to payment from the applicable operator of a penalty within 30 days after the city gives the operator notice of the penalty due, in the amount of 25% of the amount of the tax due for the quarter(s) for which the misappropriation or fraud was committed, which penally shall be in addition to and not in lieu of the default interest and any compound default interest due (“
(D) Petition for waiver. Any operator who is liable for payment of default interest or compound default interest may, upon the filing of all required city returns and payment of all tax, default interest and compound interest determined by the city to be done, petition the City Recorder for waiver and refund of the default interest or compound interest, and the City Recorder may, if good cause is shown, waive and direct a refund of the default interest or compound default interest or any portions thereof.
(Ord. 2003-01, passed 2-4-2003)