(a) Interest. All taxes imposed and all moneys 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 maximum rate permitted under R.C. § 718.27 per annum, or fraction thereof.
(b) Penalties. In addition to interest as provided in division (a) of this Section 181.12, penalties based on the unpaid tax are hereby imposed as follows:
(1) (a) For tax years ending on or before December 31, 2022, for failure to file a return by the dates prescribed herein, including any extension of time granted by the Tax Administrator, whether or not a tax is due, unless it is shown that the failure is due to reasonable cause, and not to willful neglect, a penalty of not less than twenty- five dollars shall be assessed by the Tax Administrator. For each month a return remains unfiled, an additional penalty of twenty- five dollars may be assessed, up to a maximum of $150.00. § 718.27(C)(2)(a)
(b) For tax years ending on or after January 1, 2023, with respect to returns other than estimated income tax returns, the City may impose a penalty not exceeding twenty-five dollars for each failure to timely file each return, regardless of the liability shown thereon, except that the City shall abate or refund the penalty assessed on a taxpayer's first failure to timely file a return after the taxpayer files that return.
(2) For failure to pay taxes due, other than taxes withheld, the penalty permitted by R.C. § 718.27(C)(2)(a), as amended from time to time.
(3) For failure to remit taxes withheld from employees, the penalty permitted by R.C. § 718.27(C)(2)(b), as amended from time to time.
(c) Exceptions. 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 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 a final determination of the federal tax liability.
(d) Abatement of Penalty, Interest, or Both. Upon recommendation of the Tax Administrator or upon appeal from the refusal of the Tax Administrator to so recommend, the Board of Review may abate penalty or interest, or both.
(e) In addition to the foregoing penalties, a penalty provided in R.C. § 718.27(C), as amended from time to time, against all taxpayers who fail to file a return within the time period in this chapter.
(f) By the thirty-first day of October of each year the City shall publish the rate described in division (a) of this Section 181.12 applicable to the next succeeding calendar year.
(Ord. 01-2018. Passed 2-26-18; Ord. 16-2023. Passed 12-18-23.)