(a) All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter, and remaining unpaid ten days after they become due, shall bear interest at the rate of one-half of one percent per month or fraction thereof.
(b) In addition to interest as provided in division (a) of this section, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, other than taxes withheld: one-half of one percent per month or fraction thereof or 10%, whichever is greater;
(2) For failure to remit taxes withheld from employees: 3% per month or fraction of a month or 10%, whichever is greater;
(3) If by the due date of the annual return the taxpayer has failed to pay taxes, through tax withheld and/or estimated payments, equal to or greater than the tax paid for the previous year, or to pay taxes equal to or greater than 90% of the actual tax for the year: 10% of the difference between 90% of the actual tax for the year and the amount paid through withholding and/or estimated payments;
(4) Except in the case of fraud, the penalty shall not exceed 50% of the unpaid tax.
(c) A penalty shall not be assessed on an additional tax assessment made by the Superintendent when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Superintendent. Further, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal audit, provided that 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 Superintendent, the Board of Tax Appeals may abate penalty or interest, or both, and on appeal from the refusal of the Superintendent to so recommend, the Board of Tax Appeals may nevertheless abate interest or penalty, or both.
(e) However, in no case shall penalty and interest charges be levied when the total of such penalty and interest amounts to less than one dollar ($1.00).
(f) Any person required to withhold the tax, who knowingly fails to withhold such tax or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded or not withheld or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
(Initiative Ord. Passed 11-5-68; Ord. 2004-11. Passed 4-5-04.)