(a) Interest on Unpaid Tax. All taxes imposed and all moneys withheld or required to be withheld by employers under the provision of this chapter and remaining unpaid after they become due shall be subject to same interest rate as the interest rate as described in division (h) of this section, per annum. This imposition of interest shall be assessed per month, or fraction of a month.
(b) Penalties. In addition to interest as provided in subsection (a) hereof penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to file a complete return or failure to pay any taxes due other than taxes withheld, a penalty of thirty-five dollars ($35.00) plus one percent (1%) per month or fraction thereof on the tax owed;
(2) For failure, by an employer, to pay taxes withheld from employees: five percent (5%) per month or fraction thereof of the unpaid tax with a minimum penalty of twenty-five dollars ($25.00).
(c) Exceptions to Penalties. A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; and provided further, that in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal audit, providing an amended return is filed and the additional tax is paid within three months after a final determination of the Federal tax liability.
(d) Abatement of Interest and Penalty. Upon recommendation of the Administrator, the Board of Review may abate penalty or interest or both or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both for good cause shown.
(e) Violations. No person shall:
(1) Fail, neglect or refuse to make any return or declaration required by this chapter;
(2) Make any incomplete, false, or fraudulent return;
(3) Fail, neglect or refuse to pay the tax, penalties, or interest imposed by this chapter;
(4) Fail, neglect, or refuse to withhold the tax from his employees or remit such withholding to the Administrator;
(5) Refuse to permit the Administrator or any duly authorized agent or employee to examine his books, records, papers, and Federal income tax returns in relation to the income or net profits of a taxpayer;
(6) 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;
(7) Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer;
(8) Fail to comply with the provisions of this chapter or any order or subpoena of the Administrator authorized hereby;
(9) Give to an employer false information as to his true name, correct social security number and residence address, or fail to promptly notify an employer of any change in residence address and date thereof;
(10) Fail to use ordinary diligence in maintaining proper records of employee's residence addresses, total wages paid and City tax withheld, or to knowingly give the Administrator false information; or
(11) Attempt to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter.
(f) Limitation of Prosecution. All prosecutions under this section must be commenced within three 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 six years from the date the return was due or the date the false or fraudulent return was filed.
(g) Failure to Procure Tax Forms. The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return, return or declaration, from filing such form or from paying the tax.
(h) As used in this section
(1) “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.
(2) "Interest rate as described in division (h) of this section" means the federal short-term rate, rounded to the nearest whole number per cent, plus five per cent (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 division (h)(1) of this section.
(Ord. 15-52. Passed 12-17-15.)