(a) Interest. Except as provided in subsections (c) and (d) hereof, all taxes imposed and all monies withheld or required to be withheld by employers and all installments of estimated taxes required to be paid under the provisions of the Ordinance and remaining unpaid after they have became due, shall bear interest in addition to the amount of the unpaid tax, withholdings or installment of estimated tax at the rate of one percent (1%) per month or fraction thereof.
(b) Penalties.
(1) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
A. For failure to pay taxes due other than taxes withheld, ten percent (10%).
B. For failure to remit taxes withheld from employees, five percent (5%) per month or fraction thereof.
C. For failure to file a final return by the due date, regardless of any tax due, a twenty-five ($25.00) fee will be automatically assessed.
(c) Exceptions.
(1) No penalty shall be assessed on additional taxes found on audit to be due when a return was timely filed in good faith and the tax paid thereon within the prescribed time.
(2) 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 an amended return is filed and the additional tax paid within three (3) months after final determination of the federal tax liability.
(3) A taxpayer or employer shall have thirty (30) days after receipt of notice of any proposed imposition of interest and penalties within which to file a written protest or explanation with the Administrator. If no protest or explanation is filed within the prescribed time, the proposed imposition of interest and penalty shall become the final assessment. Upon filing of a written protest or explanation, the Tax Administrator shall re-determine the assessment, which may or may not be the same as the proposed assessment.
(d) Appeal From Assessment. Either the Tax Administrator of the City of Lorain or the Board of Tax Review of the City of Lorain may abate penalty or interest, or both, upon showing of good cause.
(e) Violations.
(1) Any person who shall:
A. Fail, neglect or refuse to make any return or declaration required by the Ordinance; or
B. Make any incomplete, false or fraudulent return: or
C. Intentionally or willfully fail, neglect or refuse to pay the tax, penalties or interest imposed by the Ordinance; or
D. Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Administrator; or
E. Refuse to permit the Administrator or any duly authorized agent or employee to examine his books, records, papers and federal income tax returns relating to the income or net profits of a taxpayer;
F. Fail to appear before the Administrator and to produce his books, records, papers or federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Administrator;
G. Refuse to disclose to the Administrator any information with respect to the income or net profits of taxpayer; or
H. Fail to comply with the provisions of the Ordinance or any order or subpoena of the Administrator authorized thereby; or
I. Give to an employer false information as to his true name, correct social security number and resident address or fail to promptly notify an employer of any change in resident address and date thereof; or
J. Fail to use ordinary diligence in maintaining proper records or employee's residence and address, total wages paid and municipal tax withheld, or to knowingly give the Administrator false information; or
K. Attempt to do anything whatsoever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this Ordinance; shall be guilty of a misdemeanor and shall be fined not more than one thousand dollars ($1,000), or imprisoned not more than six months or both for each offense or otherwise punished pursuant to the pertinent municipal ordinance.
(Ord. 152-94. Passed 12-19-94.)
(2) Any person who shall violate Section 191.06(g) is guilty of a minor misdemeanor for a first offense and a misdemeanor of the fourth degree for a subsequent offense. (Ord. 173-03. Passed 12-1-03.)
(f) Limitations on Prosecutions. All prosecutions under this Section must be commenced within five (5) years from the time of the offense complained of except in the case of failure to file a return or in the case of filing a false or fraudulent return, in which event the limitation of time within which prosecution must be commenced shall be ten (10) years from the date the return was due or the date the false or fraudulent return was filed.
(g) Failure to Receive Forms is no Excuse. The failure of any taxpayer to receive or procure a declaration or other required form shall not excuse him from making any information return, declaration of return, from filing such form or from paying the tax.
(h) Bad Checks.
(1) If any check or money order in payment of any amount receivable under this chapter, other than those provided for under subsection (h)(2) hereof, is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, upon notice and demand by the Administrator, in the same manner as tax, an amount equal to twenty dollars ($20.00).
(2) If any check in payment of any amount receivable under this chapter, is drawn on a financial institution not located within one of the twelve Federal Reserve Districts and results in a processing fee charged to Lorain, there shall be paid as a penalty by the person who tendered such check, upon notice and demand by the Administrator, in the same manner as tax, an amount equal to such processing fee.
(Ord. 152-94. Passed 12-19-94.)