(A) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
APPLICABLE LAW. This chapter, the resolutions, ordinances, codes, directives, instructions and rules adopted by a municipal corporation 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.
INCOME TAX, ESTIMATED INCOME TAX and WITHHOLDING TAX. 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.
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.
FEDERAL SHORT-TERM RATE. 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 the I.R.C. § 1274, for July of the current year.
INTEREST RATE. As described in this division (A), means the federal short-term rate, rounded to the nearest whole number per cent, plus 5%. 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 the definition for FEDERAL SHORT-TERM RATE described in this division (A).
UNPAID ESTIMATED INCOME TAX. Estimated income tax due but not paid by the date the tax is required to be paid under applicable law.
UNPAID INCOME TAX. Income tax due but not paid by the date the income tax is required to be paid under applicable law.
UNPAID WITHHOLDING TAX. Withholding tax due but not paid by the date the withholding tax is required to be paid under applicable law.
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 applies to the following:
(a) Any return required to be filed under applicable law for taxable years beginning on or after January 1, 2016; and
(b) Income tax, estimated income tax and withholding tax required to be paid or remitted to the municipal corporation 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 before January 1, 2016, of the municipal corporation to which the return is to be filed or the payment is to be made.
(C) Each municipal corporation levying a tax on income may impose on a taxpayer, employer, any agent of the employer and any other payer, and must attempt to collect, the interest amounts and penalties prescribed under this division (C) 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 municipal corporation timely and full payment or remittance of income tax, estimated income tax or withholding tax or to file timely with the municipal corporation any return required to be filed.
(1) Interest shall be imposed at the rate described in division (A) above, per annum, on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax.
(2) (a) With respect to unpaid income tax and unpaid estimated income tax, a municipal corporation may impose a penalty equal to 15% of the amount not timely paid.
(b) With respect to any unpaid withholding tax, a municipal corporation may impose a penalty not exceeding 50% of the amount not timely paid.
(3) With respect to returns other than estimated income tax returns, a municipal corporation may impose a penalty of $25 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 remains unfiled regardless of the liability shown thereon. The penalty shall not exceed $150 for each failure.
(D) (1) With respect to the income taxes, estimated income taxes, withholding taxes and returns, no municipal corporation shall impose, seek to collect or collect any penalty, amount of interest, charges or additional fees not described in this section.
(2) With respect to the income taxes, estimated income taxes, withholding taxes and returns not described in division (A) above, nothing in this section requires a municipal corporation to refund or credit any penalty, amount of interest, charges or additional fees that the municipal corporation has properly imposed or collected before January 1, 2016.
(E) Nothing in this section limits the authority of a municipal corporation to abate or partially abate penalties or interest imposed under this section when the Tax Administrator determines, in the Tax Administrator’s sole discretion, that such abatement is appropriate.
(F) By October 31 of each year the municipal corporation shall publish the rate described in division (A) above applicable to the next succeeding calendar year.
(G) The municipal corporation may impose on the taxpayer, employer, any agent of the employer or any other payer the municipal corporation’s post-judgment collection costs and fees, including attorney’s fees.
(R.C. § 718.27) (Prior Code, § 35.10.01)