(A) All taxes imposed and all monies withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of 1% per month.
(B) In addition to interest as provided in division (A) of this section, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, a penalty of 1% per month with a maximum of 25% of the net tax liability and with an annual minimum $20. The $20 minimum is waived for first-time filers and if taxes are paid within two weeks of filing.
(2) For failure to remit taxes withheld or required to be withheld from employees: 3% per month.
(3) Where the taxpayer has failed to file a return by the due date or by the date resulting from extension, a failure to file fee of $25 may be assessed.
(4) Where the employer has failed to file monthly or quarterly returns by the due dates, a failure to file fee of $25 may be assessed per each return.
(C) Exceptions.
(1) 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, or filed in accordance with Article VII, Section C of the rules and regulations; 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 final determination of the federal tax liability.
(2) The city shall not impose any penalty, interest, or other similar assessment or charge against a taxpayer for the late payment or nonpayment of estimated tax liability in either of the following circumstances:
(a) The taxpayer is an individual who resides in the city but was not domiciled there on the first day of January of the current calendar year; or
(b) The taxpayer has timely remitted an amount at least equal to 100% of the taxpayer’s tax liability for the preceding year as shown on the return filed by the taxpayer for the preceding year, provided that the return for the preceding year reflected a 12-month period and taxpayer filed a return for the preceding year.
(D) A return check fee will be assessed in an amount set periodically in the rules and regulations promulgated by the Tax Administrator.
(E) 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.
(Ord. 28-02, passed 12-16-02; Am. Ord. 1-11, passed 2-15-11; Am. Ord. 15-15, passed 12-15-15)