(a) All taxes imposed, including estimated taxes required to be paid, and moneys withheld by employers, or required to be withheld by employers, under the provisions of this chapter and remaining unpaid after they have become due shall bear interest, in addition to the amount of the unpaid tax or withholdings, at the rate of one percent per month or fraction thereof.
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, other than taxes withheld, one percent per month or fraction thereof;
(2) For failure to remit taxes withheld from employees, three percent per month or fraction thereof;
(3) Where the taxpayer has:
A. Failed to file a declaration of estimated tax on or before April 15 and pay all estimated taxes so declared on or before the fifteenth of the month following the end of his taxable year on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year; or
B. 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 the tax paid for the previous year, or failed to file a declaration on which he has estimated and paid tax equal to or greater than ninety percent of the actual tax for the year, a penalty of ten percent of the difference between ninety percent of the actual tax for the year and the amount of tax paid through estimated, withholding, or declaration; or
C. Failed to file a return and pay the total tax on or before the fifteenth of the month following the end of his taxable year; a penalty of ten percent of the difference between ninety percent of the actual tax for the year and the amount paid through estimated, withholding and/or declaration.
(4) Except in the case of fraud, the penalty shall not exceed fifty percent of the unpaid tax.
(c) Exceptions. No penalty shall be assessed on an additional tax assessment made by the Commissioner of Taxation when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Commissioner of Taxation, 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.
(d) Upon recommendation of the Commissioner of Taxation, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Commissioner of Taxation to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.
(e) For any persons or businesses who are currently charged with a criminal violation for failure to file or failure to pay Trenton City Earnings Tax, the City Attorney shall recommend appropriate action to be taken, and with the approval of the Mayor and City Treasurer, the penalties and interest may be waived if justice so indicates.
(Ord. 05-2014. Passed 3-6-14.)