In the event a determination has been made that a tax is due and owing, whether through audit, assessment or the issuance of a tax bill, the tax must be paid within the time frame specified in the notice or bill sent to the taxpayer.
A. Interest. Interest shall be assessed on any late payment, underpayment, or nonpayment of the tax at the rate of 15% per annum, based on a year of 365 days and the number of days elapsed.
B. Penalties.
1. Late filing penalty. If a tax return is not filed within the time and in the manner provided by the controlling tax ordinance, a late filing penalty, of five percent (5%) of the amount of tax required to be shown as due on a return shall be imposed; provided that the tax return is filed prior to the Village’s issuance of a notice of tax delinquency or notice of tax liability. The late filing penalty shall not apply if a failure to file penalty is imposed.
2. Late payment penalty. If a taxpayer fails to pay the amount of tax due in full within the time and in the manner provided by the controlling ordinance, a late payment penalty of five percent (5%) of the amount of tax due shall be imposed, provided that the full amount of the tax due is paid prior to the Village’s issuance of a notice of tax delinquency or notice tax liability. The late payment penalty shall not apply if a failure to file penalty is imposed.
3. Failure to file penalty. If no return is filed prior to the Village’s issuance of a notice of tax delinquency or notice of tax liability, then a failure to file penalty shall be assessed, in an amount equal to twenty-five percent (25%) of the total tax due for the applicable reporting period for which the return was required to be filed.
(MC-9-2000, Added, 01/02/2001)