(a) Any person who fails to pay any tax to the City, or any operator or other person who fails to collect and remit any third-party taxes shall pay a penalty of 5% of the tax, if the failure is for not more than one month after the tax became delinquent, plus an additional 5% for each following month or fraction of a month during which such failure continues, up to 20% in the aggregate, until the date of payment. Any taxes remaining unpaid for a period of 90 days after notification that the tax is delinquent shall be subject to an additional penalty of 20% of the amount of the tax. The penalty and interest provided under this Section 6.17-1 shall not apply with respect to the Payroll Expense Tax, the Gross Receipts Tax, the Early Care and Education Commercial Rents Tax, and the Homelessness Gross Receipts Tax if the sum of the Payroll Expense Tax payments, Gross Receipts Tax payments, Early Care and Education Commercial Rents Tax payments, and the Homelessness Gross Receipts Tax payments is equal to or greater than the sum of the Payroll Expense Tax, Gross Receipts Tax, Early Care and Education Commercial Rents Tax, and the Homelessness Gross Receipts Tax liability for that tax year.
(b) If the failure to pay any tax is due to fraud or an intent to evade the Business and Tax Regulations Code or the Tax Collector’s rules and regulations, an additional penalty in the amount of 50% of the amount due, in addition to any other penalties and interest, shall be added thereto. A taxpayer or other person against whom a fraudulent failure to pay penalty is asserted is entitled to a notice of such determination to be issued in accordance with the provisions of Sections 6.11-1 et seq. and to the appeal rights set forth in Sections 6.13-1 et seq.
(c) Unpaid taxes shall also accrue interest at the rate of 1% per month, or fraction of a month, from the date the taxes become delinquent through the date the taxpayer or operator pays the delinquent taxes, penalties, interest, and fees accrued to the date of payment in full.
(d) This Section 6.17-1 shall apply as follows:
(1) to all returns and payments for tax periods ending and taxable events occurring on or before December 31, 2020, except as provided in subsections (d)(2) and (d)(3) of this Section 6.17-1;
(2) to all returns and payments for registration years ending on or before June 30, 2021 with respect to the registration fee imposed under Section 855 of Article 12; and
(3) to all returns and payments for fiscal years ending on or before June 30, 2021 with respect to fees, assessments, and other charges subject to this Article 6 that are imposed on a fiscal year basis.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 93-99, File No. 990303, App. 4/30/99; Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 271-13, File No. 131031, App. 11/27/2013, Eff. 12/27/2013, Oper. 1/1/2014; Ord. 222-14
, File No. 140798, App. 11/7/2014, Eff. 12/7/2014; Ord. 235-18, File No. 180753, App. 10/12/2018, Eff. 11/12/2018, Oper. 1/1/2019; Ord. 69-19, File No. 181110, App. 4/19/2019, Eff. 5/20/2019, Retro. 1/1/2019; Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)