(a) Interest. All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this Tax Code and remaining unpaid after they have become due shall bear interest at the same rate which Ohio R.C. 718.12, requires be paid by municipalities on their income tax refunds, i.e., the Federal short-term rate as defined in Ohio R.C. 5703.47, plus one and one half percent (1 ½ %) per year.
(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 pay taxes due, other than taxes withheld: One and one-half percent (1 ½%) per month or fraction thereof,
(2) For failure to remit taxes withheld or required to be withheld from employees: Three percent (3%) per month or fraction thereof,
(3) Where the taxpayer has failed to file a return by the due date or by the date resulting from extension, fifty dollars ($50.00).
(4) Where the taxpayer has failed to file a declaration on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year or where he has filed a previous return and has failed to file a declaration on which he has estimated and paid tax equal to or greater than ninety percent (90%) of the actual tax for the year, or has failed to file a return and pay the total tax on or before the end of the month following the end of his taxable year: Ten percent (10%) of the difference between ninety percent (90%) of the actual tax for the year and the amount paid through withholding or declaration.
(5) Except in the case of fraud, the penalty shall not exceed one hundred percent (100%) of the unpaid tax.
(c) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Tax Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax 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 (3) months after the final determination of the Federal tax liability.
(d) Waiver for First Time Violators. Compute penalties for a first violation shall not be assessed. However, notification to the taxpayer for the first time violation will be made.
(e) Abatement of Penalty and Interest. At the Tax Administrator's discretion, the Tax Administrator may abate up to $1,000 of penalty or interest, or both. Upon recommendation of the Tax Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Tax Administrator to recommend abatement of penalty and/or interest, the Board may nevertheless abate penalty or interest, or both, for good cause shown.
(Ord. 3007. Passed 7-15-08.)