§ 39.29   INTEREST AND PENALTIES.
   (A)   Interest. All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this Tax Code and remaining unpaid five days after they become due shall bear interest at the same rate which Ohio R.C. § 718.12 requires be paid by municipalities on their income tax refunds, i.e., the federal short-term rate as defined in Ohio R.C. § 5703.47, plus 3% per year.
   (B)   Penalties. In addition to interest as provided in division (A) hereof, penalties are hereby imposed as follows based on the tax remaining unpaid after it becomes due:
      (1)   For failure to pay taxes due, other than taxes withheld, 1-1/2% per month or fraction thereof, or $25, whichever is greater;
      (2)   For failure to remit taxes withheld or required to be withheld from employees, 3% per month or fraction thereof, or $25, whichever is greater;
      (3)   Where the taxpayer has failed to file a return by the due date or by the date resulting from extension, $25;
      (4)   Where the taxpayer has failed to file a declaration on which he or she has estimated and paid a tax equal to or greater than the tax paid for the previous year, or where he or she has filed a previous return and has failed to file a declaration on which he or she has estimated and paid a tax equal to or greater than 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; 10% of the difference between 90% of the actual tax for the year and the amount paid through withholding and declaration;
      (5)   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 municipal corporation but was not domiciled there on the first day of January of the current calendar year; or
      (6)   Except in the case of fraud, the penalty shall not exceed 50% of the unpaid tax.
   (C)   Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Tax Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed, by the Tax Administrator; and provided further 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 months after the final determination of the federal tax liability.
   (D)   Minimum penalty. Computed penalties of less than $5 for a first violation shall not be assessed. However, notification to the taxpayer of a first time violation will be made.
   (E)   Abatement by Board of Review. Upon recommendation of the Tax Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Tax Administrator to recommend abatement of penalty and interest concerning an item of income or expense, the Board may nevertheless abate penalty, interest, or both.
(1995 Code, § 39.29) (Ord. 73-11, passed 2-19-1973; Am. Ord. 2001-O-3, passed 2-26-2001; Am. Ord. 2003-O-53, passed 12-22-2003)