§ 19-509. Interest, Penalties and Costs. 90

   (1)   If any tax authorized or imposed under this Title is not paid when due, prior to July 1, 1987, there shall be added to the amount of the unpaid tax and collected therewith, interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax, and a penalty at the rate of one percent (1%) of the amount of the unpaid tax shall be added for each month or fraction thereof during which said tax shall remain unpaid and shall be collected, together with the amount of the tax. This provision shall not apply to: 91

      (a)   Real estate and personal property taxes subject to Section 19-1302 and Section 19-1101; and

      (b)   Taxes imposed by subsection 19-1502(1)(a) or (b) that are not, in fact, withheld pursuant to Section 19-1504; provided, however, when such tax is not paid when due interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax and a penalty of one percent (1%) of the amount of the unpaid tax per month for the first year and one-half of one percent (0.5%) per month thereafter shall be added and collected together with the amount of the tax; and

      (c)   General Business Taxes authorized under Section 19-1803.

   (2)   Commencing on July 1, 1987 and terminating on December 31, 2013, if any tax authorized or imposed under this Title was not paid when due or is not paid when it becomes due, there shall be added to the amount of the unpaid tax, interest, and penalty and collected therewith: 92

      (a)   interest at the rate of one percent (1%) of the amount of the unpaid tax each month or fraction thereof during which the tax remains unpaid; and 93

      (b)   penalty calculated on the amount of the unpaid tax at the following rates for each month during which the tax remains unpaid:

         (.1)   in the first month or fraction thereof following the due date, one percent (1%);

         (.2)   in the second month or fraction thereof following the due date, an additional one percent (1%) for a total of two percent (2%);

         (.3)   in the third month or fraction thereof following the due date, an additional one percent (1%) for a total of three percent (3%);

         (.4)   in the fourth month or fraction thereof following the due date, an additional two percent (2%) for a total of five percent (5%);

         (.5)   in the fifth month or fraction thereof following the due date, an additional two percent (2%) for a total of seven percent (7%);

         (.6)   in the sixth month or fraction thereof following the due date, an additional two percent (2%) for a total of nine percent (9%);

         (.7)   in the seventh month or fraction thereof following the due date, an additional three percent (3%) for a total of twelve percent (12%);

         (.8)   in the eighth month or fraction thereof following the due date, an additional three percent (3%) for a total of fifteen percent (15%);

         (.9)   in the ninth month or fraction thereof following the due date, an additional three percent (3%) for a total of eighteen percent (18%);

         (.10)   in the tenth month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-two percent (22%);

         (.11)   in the eleventh month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-six percent (26%);

         (.12)   in the twelfth month or fraction thereof following the due date, an additional four percent (4%) for a total of thirty percent (30%);

         (.13)   thereafter, for each additional month or fraction thereof following the due date, one and one- quarter percent (1.25%) shall be added to the amount charged under subsection (.12).

      (c)   The provisions of subsection (2)(b) shall not apply to real estate and personal property taxes subject to Section 19-1302 and Section 19-1101.

   (3)   Commencing on January 1, 2014, if any tax authorized or imposed under this Title, other than real estate taxes, was not paid when due or is not paid when it becomes due, there shall be added to the amount of the unpaid tax and collected therewith, interest and penalty, as follows: 94

      (a)   All taxes shall bear simple interest from the date they become due and payable until paid. The interest rate per annum during each calendar year shall be the sum of (i) the Federal Short-Term Rate established by the Secretary of the Treasury of the United States under the provisions of the Internal Revenue Code of 1954, 26 U.S.C. §§ 6621 et seq., effective January 1 of such calendar year without regard to any change or changes in said Federal interest rate during such calendar year, plus (ii) five (5) percentage points. The Revenue Commissioner shall publish the rate of interest for each calendar year on the Department website.

      (b)   All taxes shall bear a penalty at the rate of one and one-quarter percent (1.25%) of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid.

   (4)   Where suit is brought for the recovery of any such tax the person liable therefor shall, in addition, be liable for the costs of collection together with the interest and penalties herein imposed. 95

   (5)   In addition to any other sanction or remedial procedure provided, any person who shall: 96

      (a)   make any false or untrue statement on his or her report or return; 97

      (b)   fail or refuse to file any report or return;

      (c)   violate any condition of any license required hereunder;

      (d)   fail to pay over to the Department any monies which he or she may hold as agent for the City or School District of Philadelphia; 98

      (e)   violate any provision of this Title or any regulation adopted hereunder: shall be subject to a fine of not more than three hundred dollars ($300) for each offense. A separate offense shall be deemed to occur on the first day of each month that conduct described in subsections (5)(b) and (5)(d) continues. 99

   (6)   Any person who shall have paid, or from whom there is due or alleged to be due any moneys collectible by the Department, including any taxes, rents, charges, or other sums, and who fails and refuses to produce or permit the examination of his books, records, accounts, and related data, or to afford to authorized representatives of the Department an opportunity for such examination, shall be subject to a fine of not more than three hundred dollars ($300) for each such offense. 100

   (7)   When any person shall give or cause to be given to a City official or agency a check in payment of any obligation whether due to the City or others, including but not limited to any tax, water, sewer rent, or support order which is dishonored or unpaid by the bank upon which it is drawn, the sum of twenty dollars ($20) shall be added to the obligation and interest and penalties provided by the Code, or otherwise, to cover the additional cost to the City. 101

 

Notes

90	Source: In general, the following provisions are based on the penalty provisions formerly included under each separate City tax. These provisions generalize the penalty provisions so as to make a uniform application thereof to all taxes levied by the City. Amended, 1962 Ordinances, p. 1216; amended, 1979 Ordinances, p. 1968; amended, 1980 Ordinances, p. 12; amended, 1984 Ordinances, p. 614 (made effective as of January 1, 1986 by Bill No. 566); amended, 1985 Ordinances, p. 554; amended, 1985 Ordinances, p. 1344; amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 970155 (approved April 3, 1997).
91	Amended, 1980 Ordinances, p. 12; amended, 1987 Ordinances, p. 27.
92	Added, 1987 Ordinances, p. 27; amended, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
93	Amended, Bill No. 970155 (approved April 3, 1997). Section 2 of the Ordinance provides: "Effective Date. This Ordinance shall take effect July 1, 1997, and the increase in interest rates provided by this Ordinance shall begin to apply as that date."
94	Added, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
95	Renumbered, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
96	Renumbered and amended, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
97	Amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225.
98	Amended, 1980 Ordinances, p. 12; amended, Bill No. 1133 (approved July 24, 1995).
99	Amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225. References to subsections (4)(b) and (4)(d) changed to subsections (5)(b) and (5)(d) by Code editor because subsections were renumbered by Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
100	Renumbered, 1987 Ordinances, p. 27; amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.
101	Source: 1939 Ordinances, p. 280; amended, 1958 Ordinances, p. 1176; amended, 1983 Ordinances, p. 1146; renumbered, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014.