(a) As used in this section:
(1) “Applicable law “ means this chapter, the resolutions, ordinances , codes, directives, instructions, and rules ad opted by the Village of Valley View provided they impose or directly or indirectly address the levy, payment, remittance, or filing requirements of the Village of Valley View.
(2) “Federal short-term rate” means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less, as determined under Section 1274 of the Internal Revenue Code, for July of the current year.
(3) “Income tax,” “estimated income tax,” and “withholding tax” means any income tax, estimated income tax, and withholding tax imposed by the Village of Valley View pursuant to applicable law, including at any time before January 1, 2016.
(4) “Interest rate as described in division (a) of this section” means the federal short-term rate, rounded to the nearest who le number percent, plus five percent. The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined in accordance with division (a)(2) of this section .
(5) “Return” includes any tax return, report, reconciliation, schedule, and other document required to be filed with the Tax Administrator or the Village of Valley View by a taxpayer, employer, any agent of the employer, or any other payer pursuant to applicable law, including at any time before January 1, 2016.
(6) “Unpaid estimated income tax” means estimated income tax due but not paid by the date the tax is required to be paid under applicable law.
(7) “Unpaid income tax” means income tax due but not paid by the date the income tax is required to be paid under applicable law.
(8) “Unpaid withholding tax” means withholding tax due but not paid by the date the withholding tax is required to be paid under applicable law.
(9) “Withholding tax” includes amounts an employer, any agent of an employer, or any other payer did not withhold in whole or in part from an employee’s qualifying wages, but that, under applicable law, the employer, agent, or other payer is required to withhold from an employee’s qualifying wages.
(b) (1) This section applies to the following:
A. Any return required to be filed under applicable law for taxable years beginning on or after January 1, 2016;
B. Income tax, estimated income tax, and withholding tax required to be paid or remitted to the Village of Valley View on or after January 1, 2016.
(2) This section does not apply to returns required to be filed or payments required to be made before January 1, 2016, regardless of the filing or payment date. Returns required to be filed or payments required to be made before January 1, 2016, but filed or paid after that date shall be subject to the ordinances or rules and regulations, as adopted before January 1, 2016, of the Village of Valley View to which the return is to be filed or the payment is to be made.
(c) Should any taxpayer, employer, agent of the employer, or other payer for any reason fail, in whole or in part, to make timely and full payment or remittance of income tax, estimated income tax, or withholding tax or to file timely with the Village of Valley View any return required to be filed, the following penalties and interest shall apply:
(1) Interest shall be imposed at the rate described in division (a) of this section, per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax.
(2) A. With respect to unpaid income tax and unpaid estimated income tax, the Village of Valley View may impose a penalty equal to 15% of the amount not timely paid.
B. With respect to any unpaid withholding tax, the Village of Valley View may impose a penalty not exceeding 50% of the amount not timely paid.
(3) For tax years ending on or before December 3, 2022, with respect to returns other than estimated income tax returns, the Village of Valley View may impose a penalty of twenty-five dollars ($25.00) for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return remains unfiled regardless of the liability shown thereon. The penalty shall not exceed one hundred fifty dollars ($150.00) for each failure.
B. For tax years ending on or after January 1, 2023, with respect to returns other than estimated income tax return, the Village may impose a penalty not exceeding twenty-five dollars ($25.00) for each failure to timely file each return, regardless of the liability shown thereon, except that the Village shall abate or refund the penalty assessed on a taxpayers first failure to timely file a return after the taxpayer files that return.
(d) Nothing in this section requires the Village of Valley View to refund or credit any penalty, amount of interest, charges, or additional fees that the Village of Valley View has properly imposed or collected before January 1, 2016.
(e) Nothing in this section limits the authority of the Village of Valley View to abate or partially abate penalties or interest imposed under this section when the Tax Administrator determines, in the Tax Administrator’s sole discretion, that such abatement is appropriate.
(f) By the third day of October of each year the Village of Valley View shall publish the rate described in division (a) of this section applicable to the next succeeding calendar year.
(g) The Village of Valley View may impose on the taxpayer, employer, any agent of the employer, or any other payer the Village of Valley View’s post-judgment collection costs and fees, including attorney’s fees.
(Ord. 2018-4-2. Passed 4-3-18; Ord. 2023-11-4. Passed 11-7-23.)