(a) Underpayments. If any amount of a tax administered under the article is not paid on or before the last day prescribed for payment, interest on such amount at the rate of ten percent (10%) per annum shall be paid for the period from such last date to the date paid. For purposes of this subsection, the last date prescribed for payment shall be the due date of the return and shall be determined without regard to any extension of time for payment.
(b) Erroneous Refund or Credit. If any refund is made or credit is established upon an erroneous claim for refund or credit, interest on such amount refunded or credited at the annual rate of eight percent (8%) per annum, shall be paid by the claimant for the date the refund was made or the credit was taken to the date such amount is recovered.
(c) Applicable Rules. For purposes of this section:
(1) Interest treated as tax. Interest prescribed under this section on the tax shall be collected and paid in the same manner as taxes.
(2) No interest on interest. No interest under this section shall be imposed on the interest provided by this section.
(3) Interest on penalties or additions to tax. Interest shall be imposed under subsection (a) hereof on any assessable penalty or additions to tax only if such penalty or additions to tax are not paid within fifteen days from the date of notice and demand therefor, and in such case interest shall be imposed only for the period from the date of the notice and demand to the date of payment.
(4) Payments made within fifteen days after notice and demand. If notice and demand is made for payment of any amount, and if such amount is paid within fifteen days after the date of such notice and demand, interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.
(5) Limitation on collection. Interest prescribed under this section on any tax may be collected at any time during the period within which the tax may be collected.
(Ord. 0-604. Passed 8-28-90.)