(a) All taxes imposed and all moneys withheld or required to be withheld under the provisions of this Chapter and remaining unpaid after they become due shall bear interest at the rate of one percent per month or fraction thereof.
(b) In addition to interest as provided in division (a) hereof, penalties for failure to file appropriate tax returns, to pay taxes and to withhold and remit taxes pursuant to the provisions of this Chapter are hereby imposed as follows:
(1) For failure to pay tax due other than taxes withheld, two percent of the unpaid tax for each month or fraction thereof after the tax becomes due, or twenty-five dollars ($25.00), whichever is greater; and
(2) For failure to withhold and remit to the City the taxes to be withheld from employees, 6% of the unpaid tax for each month or fraction thereof after the tax becomes due, or twenty-five dollars ($25.00), whichever is greater; and
(3) For failure to file a return required by Section 890.05 on or before April 15 of each year, or in the case of a taxpayer on a fiscal year basis, on or before the date fixed by regulation of the Superintendent of Taxation, regardless of the amount of tax due, if any:
A. A ten dollar ($10.00) penalty if the return is filed before the end of the month following the date the return comes due; and
B. A twenty-five ($25.00) penalty if the return is filed after the time set forth in division (3)(A) above.
(4) If it is necessary for the Superintendent to file a court action, either civil or criminal, or seek collection services from an outside agency, in order to compel the filing of an overdue tax return or to collect unpaid taxes, a fifty dollar ($50.00) penalty shall be imposed in addition to the other interest and penalties imposed by this section.
(5) Except in the case of fraud, the penalty shall not exceed 50% of the unpaid tax.
(c) A penalty shall not be assessed on an additional tax assessment made by the Superintendent of Taxation when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Superintendent, provided that, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from Federal audit if an amended return is filed and the additional tax is paid within three months after final determination of the Federal tax liability.
(d) The Superintendent may, in his or her sound discretion, reduce or abate penalty or interest, or both, in an amount not to exceed one hundred dollars ($100.00) per return for a residential account and one thousand dollars ($1,000.00) per return for a business or withholding account if equity so requires.
(e) A timely appeal filed with the Board of Tax Review in accordance with the requirements of this Chapter shall stay the time for imposition and accumulation of interest a penalties due under this section, during the pendency of the appeal. The imposition and accumulation of such interest and penalties shall resume upon the decision of the Board of Tax Review.
(f) No penalties under this section shall be imposed on a taxpayer who is required to file a City tax return for the first time if said taxpayer files a tax return within 30 days of being notified of the requirement to file a City tax return by the Superintendent or the Division of Taxation. This division is not intended to apply to persons or entities who have previously been required to file a City tax return or pay City tax under this Chapter under their present or any other name.
(Ord. O98-103, passed 12-15-1998; Am. Ord. 2001-118, passed 12-18-2001; Am. Ord. O2004-28, passed 4-6-2004)
(g) No penalties shall be imposed on a taxpayer whose tax liability is less than twenty dollars ($20.00).