(A) As used in this section:
(1) "Applicable law" means this chapter, the resolutions, ordinances, codes, directives, instructions, and rules adopted by the Municipality provided such resolutions, ordinances, codes, directives, instructions, and rules impose or directly or indirectly address the levy, payment, remittance, or filing requirements of a municipal income tax.
(2) "Federal short-term rate" means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less, as determined under section 1274 of the Internal Revenue Code, for July of the current year.
(3) "Income tax," "estimated income tax," and "withholding tax" mean any income tax, estimated income tax, and withholding tax imposed by a municipal corporation pursuant to applicable law, including at any time before January 1, 2016.
(4) "Interest rate as described in division (A) of this section" means the federal short-term rate, rounded to the nearest whole number per cent, plus five per cent. The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined in accordance with division (A)(2) of this section.
(5) "Return" includes any tax return, report, reconciliation, schedule, and other document required to be filed with a Tax Administrator or municipal corporation by a taxpayer, employer, any agent of the employer, or any other payer pursuant to applicable law, including at any time before January 1, 2016.
(6) "Unpaid estimated income tax" means estimated income tax due but not paid by the date the tax is required to be paid under applicable law.
(7) "Unpaid income tax" means income tax due but not paid by the date the income tax is required to be paid under applicable law.
(8) "Unpaid withholding tax" means withholding tax due but not paid by the date the withholding tax is required to be paid under applicable law.
(9) "Withholding tax" includes amounts an employer, any agent of an employer, or any other payer did not withhold in whole or in part from an employee's qualifying wages, but that, under applicable law, the employer, agent, or other payer is required to withhold from an employee's qualifying wages.
(B) (1) This section shall apply to the following:
(a) Any return required to be filed under applicable law for taxable years beginning on or after January 1, 2016;
(b) Income tax, estimated income tax, and withholding tax required to be paid or remitted to the Municipality on or after January 1, 2016 for taxable years beginning on or after January 1, 2016
(2) This section does not apply to returns required to be filed or payments required to be made before January 1, 2016, regardless of the filing or payment date. Returns required to be filed or payments required to be made before January 1, 2016, but filed or paid after that date shall be subject to the ordinances or rules,, as adopted from time to time before January 1, 2016 of this Municipality.
(Ord. 15-121. Passed 11-5-15.)
(C) The Municipality shall impose on a taxpayer, employer, any agent of the employer, and any other payer, and will attempt to collect, the interest amounts and penalties prescribed in this section when the taxpayer, employer, any agent of the employer, or any other payer for any reason fails, in whole or in part, to make to the Municipality timely and full payment or remittance of income tax, estimated income tax, or withholding tax or to file timely with the Municipality any return required to be filed.
(1) Interest shall be imposed at the rate defined as "interest rate as described in division (A) of this section," per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax. This imposition of interest shall be assessed per month, or fraction of a month.
(2) With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen percent of the amount not timely paid shall be imposed.
(3) With respect to any unpaid withholding tax, a penalty equal to fifty percent of the amount not timely paid shall be imposed.
(4) A. For tax years ending on or before December 31, 2022, with respect to returns other than estimated income tax returns, the Municipality shall impose a monthly penalty of twenty-five dollars for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return liability shown thereon for each month, or any fraction thereof, during which the return remains untiled regardless of the liability shown thereon. The penalty shall not exceed a total of one hundred fifty dollars in assessed penalty for each failure to timely file a return.
B. For tax years ending on or after January 1, 2023, with respect to returns other than estimated income tax returns, the Municipality may impose a penalty not exceeding $25 for each failure to timely file each return, regardless of the liability shown thereon, except that Municipality shall abate or refund the penalty assessed on a taxpayer's first failure to timely file a return after the taxpayer files thar return. (Ord. 23-152. Passed 11-9-23.)
(D) With respect to income taxes, estimated income taxes, withholding taxes, and returns, the Municipality shall not impose, seek to collect, or collect any penalty, amount of interest, charges or additional fees not described in this section.
(E) With respect to income taxes, estimated income taxes, withholding taxes, and returns, the Municipality shall not refund or credit any penalty, amount of interest, charges, or additional fees that were properly imposed or collected before January 1, 2016.
(F) The Tax Administrator, with the approval of the Mayor, the Fiscal Officer and the Chair of the Finance Committee, may abate or partially abate penalties or interest imposed under this section when the Tax Administrator deems such abatement or partial abatement to be appropriate.
(1) Such abatement or partial abatement shall be properly documented and maintained on the record of the taxpayer who received benefit of such abatement or partial abatement.
(2) The Tax Administrator, with the approval of the Mayor, the Fiscal Officer and the Chair of the Finance Committee, shall be empowered, on a case-case basis, to establish a Delinquent Tax Payment Plan ("Payment Plan") in order to collect previously-assessed delinquent taxes, under the following circumstances.
(a) No Payment Plan shall be entered into unless and until the tax delinquency has been unpaid for a minimum period of six months, and the Fiscal Officer, after consulting with the Tax Administrator, has made a determination that absent the use of a Payment Plan, collection of the delinquent tax is not likely.
(b) No Payment Plan shall be entered into unless it provides for payment of 100% of the delinquent income tax, exclusive of interest and penalties.
(c) The Payment Plan shall require a minimum monthly payment of three percent of the amount to be paid, and the full amount to be paid must be fully paid within three years.
(d) Except as provided by Paragraph (d)(5) of this Section, any Payment Plan entered into will "freeze" the delinquent balance subject to payment under the Payment Plan and no additional penalty or interest will be compounded on said balance.
(e) No Payment Plan shall be entered into unless it requires all of the following:
(i) The taxpayer must make all payments on or before the dates specified by the Payment Plan.
(ii) In addition to making all payments of the delinquent taxes as specified by the Payment Plan, the taxpayer must timely pay all new taxes accruing subsequent to the date of the Payment Plan (including withholding taxes, if applicable), and all such taxes shall be paid on or before the date due.
(iii) In addition to making all payments under the Payment Plan and timely paying all new taxes, the Taxpayer shall timely file all tax returns due subsequent to the date of the Payment Plan.
(iv) If any payment required is not made on time, or if the taxpayer fails to file any tax return as required by Section 182.091, the Payment Plan will deemed null and void, and the full amount due, including all interest and penalties (including interest and penalties that accrued during the period of the Payment Plan), and any and all taxes that were due subsequent to the adoption to the Payment Plan, will then immediately be submitted for collection through legal action.
(f) If the taxpayer enters into the Payment Plan and successfully completes all payments made thereunder, those payments shall constitute satisfaction in full of all of the delinquent amounts (including interest and penalties) originally determined to be owed.
(g) Nothing in the Payment Plan shall be construed as limiting or relieving, in any way, any of the taxpayer's obligations under this Chapter, except as expressly provided in the Payment Plan.
(G) The Municipality may impose on the taxpayer, employer, any agent of the employer, or any other payer the Municipality's post-judgment collection costs and fees, including attorney's fees.
(Ord. 15-121. Passed 11-5-15.)