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A. Assessment To Recover Unpaid Penalties And Interest: If any person or taxpayer or vendor fails, neglects or refuses to collect the tax or to make a return and pay the tax as required by this chapter or should fail to remit the proper amount of tax or underpays the tax because of negligence, fraud, or on a regular basis, penalties and interests plus any costs of collection shall be added and imposed in accordance with the following provisions and in the event the person, taxpayer, or vendor fails to pay the additions to tax penalties and interest as required by this chapter then the town manager on such information as is available, shall make an estimate of the tax and additions thereto and shall give to the delinquent taxpayer, person or vendor written notice of final determination assessment and demand for payment, which assessment of deficiency amount will be due and payable ten (10) days after such notice.
B. Failure To File Tax Return; Failure To Pay Tax Deficiency Due To Negligence: If any taxpayer or vendor fails to file a return or pay the tax on any return required under this chapter on the date prescribed therefor, determined with regard to any extension of time for filing, unless it is shown that such failure is due to reasonable cause and not due to negligence or intentional disregard of authorized rules and regulations but without intent to defraud, there shall be added thereto a penalty of fifteen dollars ($15.00) for such failure or ten percent (10%) of the deficiency whichever is greater; the interest in such case shall be collected at a rate of one and one-half percent (11/2%) per month on the amount of such deficiency from the time the return was due.
C. Mathematical Error On Tax Returns: In the event that the amount of tax is understated on the taxpayer's return due to a mathematical error, the town shall notify the taxpayer by written notice of final determination assessment and demand for payment of the amount of tax in excess of that shown in the return which is due and has been assessed. The taxpayer shall have no right of protest or appeal as in the matter of other assessments but shall pay the tax due and assessed or file an amended return to show the true amount of tax due within ten (10) days from such assessment.
D. Interest On Extensions Of Time For Payment Or On Mathematical Errors Resulting In Underpayment Of Tax: If any amount of sales or lodging tax is not paid on or before the last date prescribed for payment without regard to extensions in time for payment of the tax, interest on such amount at the rate of eighteen percent (18%) per annum shall be paid for the period from such last date to the date paid. In the case of taxes in which the last date for payment is not otherwise prescribed, the last date of payment shall be deemed to be the date the liability for tax arises, and in no event shall it be later than the date notice and demand for the tax is made by the town manager or his representative.
E. Failure To File Tax Return; Failure To Pay Tax Deficiency Due To Fraud: If any taxpayer or vendor fails to file a return or pay the tax on any return required under this chapter on the date prescribed therefor, determined with regard to any extension of time for filing, and any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added fifty percent (50%) of the total amount of the deficiency and in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable ten (10) days after written notice of final determination assessment and demand for payment by the town manager and an additional one and one-half percent (11/2%) per month on said amount shall be added from the date the return was due until paid.
F. Special Penalty; Returned Checks: If a taxpayer pays for any tax imposed pursuant to this chapter by check for which there are insufficient funds to cover such check, then the town clerk may assess a penalty against such taxpayer as follows:
1. Fifteen dollars ($15.00) for the first violation;
2. Thirty dollars ($30.00) for the second violation; and
3. Fifty dollars ($50.00) for each additional violation.
If a penalty of thirty dollars ($30.00) or more has been assessed against a taxpayer by the town clerk, then the town clerk may require such taxpayer to pay all tax payments, whether due or to be due in the future, by certified funds, cashier's check or cash. The penalty imposed by this subsection F is in addition to all other penalties imposed pursuant to this chapter.
G. Special Penalty; Recurring Distraint Warrants: If any person, taxpayer or vendor liable for the payment of a tax imposed by this chapter has repeatedly failed, neglected, or refused to pay the same within the time specified for such payment, and the town manager has been required to exercise his/her enforcement proceedings three (3) or more times through the issuance of a distraint warrant to enforce collection of any such taxes due, the town manager is hereby authorized to assess and collect the amount of such taxes due together with all the interest and penalties thereon provided by law and also an additional amount for recurring warrants to compensate the town for administrative and collection costs incurred in collecting such delinquent taxes as follows:
1. Two (2) or three (3) distraint warrants issued: Fifteen percent (15%) of the delinquent taxes, interest and penalties due or the sum of twenty five dollars ($25.00), whichever is greater;
2. Four (4) or more distraint warrants: Thirty percent (30%) of the delinquent taxes, interest, and penalties due or the sum of fifty dollars ($50.00), whichever amount is greater.
H. Special Penalty; Court Summons: If any person, taxpayer or vendor liable for the payment of a tax imposed by this chapter has failed, neglected, or refused to pay the same within the time specified for such payment, and the town manager has been required to issue a court summons for the violation of this chapter, the town manager is hereby authorized to assess and collect the amount of such taxes due together with all the interest and penalties thereon provided by law and an additional amount equal to fifty percent (50%) of the delinquent taxes, accumulated penalties and interest or the sum of fifty dollars ($50.00), whichever amount is greater, to compensate the town for administrative and collection costs.
I. Town Manager May Waive Penalty: The town manager is hereby authorized to waive, for good cause shown, any penalty assessed as in this chapter provided.
1. Interest Assessment: Interest prescribed under this section be paid upon notice and demand, and shall be assessed, collected and paid in the same manner as the tax to which is applicable.
2. No Interest Assessed On Credit: If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowed with respect to such overpayment.
3. Interest Assessment Period: Interest prescribed under this section on any tax may be assessed and collected at any time during the period within which the tax to which such interest related may be assessed and collected. (Ord. 225, Series of 1994)