171.10 INTEREST AND PENALTIES.

   (a)   All taxes imposed and 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 same rate which Section 718.12 of the Ohio Revised Code requires be paid by municipalities on their income tax refunds, i.e., the federal short-term rate as defined in Section 5703.47 of the Ohio Revised Code, as amended, plus three percent (3%) per year.

   (b)   In addition to interest as provided in subsection (a) hereof, penalties for failure to pay taxes and to withhold and remit taxes pursuant to the provisions of this chapter are hereby imposed as follows:

      (1)   In the case of taxpayers and/or residents failing to file a tax return by the due date or by the date resulting from an extension, and/or failing to pay the full amount of tax due, other than taxes withheld: the higher of twenty- five dollars ($25.00) or one percent (1%) per month or fraction thereof.

      (2)   In the case of employers, required by Section 171.06 to withhold the City tax, who fail to withhold and remit such taxes to be withheld from employees to the Tax Commissioner: the higher of twenty-five dollars ($25.00) or three percent (3%) per month or fraction thereof.

      (3)   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 a tax equal to or greater than ninety percent (90%) of the actual tax for the year, or has failed to file a return and paid the total tax on or before the end of the month following the end of the 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 and declaration.

      (4)   No penalty or interest shall be charged against a taxpayer for the late payment or nonpayment of estimated tax liability if the taxpayer is an individual who resides in the municipal corporation but was not domiciled there on the first day of January of the current calendar year.

      (5)   Except in the case of fraud, the penalty shall not exceed fifty (50%) percent of the unpaid tax.

   (c)   Exceptions.

      (1)   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.

      (2)   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 final determination of the federal tax liability.

         (Ord. 2003-96E. Passed 12-23-03; Ord. 2015-40. Passed 11-24-15.)