(a) All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one percent (1%) per month or fraction thereof, in addition to the amount of the unpaid tax or withholdings.
(b) (1) In addition to interest as provided in subsection (a) hereof, penalties for nonpayment of taxes and moneys required to be withheld by employers under the provisions of this chapter are hereby imposed as follows:
A. For failure to pay taxes due, other than taxes withheld: one and one- half percent (1-1/2%) per month or fraction thereof. Minimum penalty for failure to file an annual return when due shall be twenty- five dollars ($25.00).
B. For failure to remit taxes withheld from employees: ten percent (10%) per month or fraction thereof.
(Ord. 05-114. Passed 5-5-05.)
(2) Over payments of withheld tax that have resulted due to incorrect withholding of an employee by an employer, and are not due as a result of excess withholding requested by the employee, shall be refunded to the employer. It shall be the responsibility of the employer, and not the Municipality, to refund such overpayment to the employee. However, nothing in this provision shall affect the right of a non-resident employee to apply directly to the Municipality for refunded income tax withheld for days worked out of the Village. A written letter from the employer indicating the employee did not work in Middlefield or a complete refund request form signed by the employer must accompany a request for a refund.
(Ord. 11-108. Passed 6-2-11.)
(Ord. 11-108. Passed 6-2-11.)
(c) Either the Administrator hereunder or the Board of Review may abate a penalty or interest, or both, in accordance with the following guidelines:
(1) After consultation with the Mayor and Finance Committee Chairman, the Administrator may exercise reasonable judgment in compromising any interest and/or penalties due the Village. Such reasonable judgment shall include, but not be limited to consideration of the following factors:
A. The clarity of the liability of the taxpayer. The more certain the liability of the taxpayer for the underlying tax, the lower the amount of any compromise by the Administrator should be.
B. Any exculpatory reasons offered by the taxpayer for the liability. Tax liabilities created by good-faith mistakes and/or minimal negligence by the taxpayer may increase the amount of any compromise.
C. The collectability of the taxpayer. The greater the taxpayer’s apparent collectability, the lower the amount of any compromise should be.
D. The taxpaying history of the taxpayer. The greater the taxpayer’s history of compliance with the Village’s tax requirements, the greater the amount of the compromise may be.
E. Any other relevant factor demonstrating good cause for a compromise.
(2) In no event shall the Administrator compromise the amount of interest owed to the Village by more than one thousand dollars ($1,000). In no event shall the Administrator compromise the amount of penalties due by more than one thousand dollars ($1,000).
(3) Any written offer of compromise not accepted by the taxpayer within fifteen (15) days after the date of such written offer shall expire and such offer of compromise by the Administrator shall not be binding upon the Village in any subsequent appeal.
(4) The Board of Review may abate a penalty or interest, or both and shall also consider the factors set forth in subsection (c)(1)A., B., C., D. and E.
(Ord. 09-114. Passed 5-7-09.)
(d) Notwithstanding any other provisions of this Chapter, including the limitations of Sections 181.11(c)(2) and 181.13, the Fiscal Officer, with the approval of the Mayor 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.
(1) 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.
(2) No payment Plan shall be entered into unless it provides for payment of 100% of the delinquent income tax, exclusive of interest and penalties.
(3) 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.
(4) Except as provided by subsection (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.
(5) No Payment Plan shall be entered into unless it requires all of the following:
A. The taxpayer must make all payments on or before the dates specified by the Payment Plan.
B. 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.
C. 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.
D. If any payment required by Section 181.11(d)(5)A. or Section 181.11(d)(5)B. is not made on time, or if the taxpayer fails to file any tax return as required by Section 181.11(d)(5)C., the Payment Plan will be 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 of the Payment Plan, will then immediately be submitted for collection through legal action.
(6) 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.
(7) 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.
(Ord. 15-104. Passed 4-2-15.)