181.10 INTEREST AND PENALTIES.

   Effective January 1, 1996:

   (a)   All taxes imposed by this chapter, including all taxes withheld, or required to be withheld, by employers under Section 181.06, and remaining unpaid after they have become due shall bear interest at the rate of twelve percent (12%) per annum. In addition to the interest imposed by the previous sentence, a penalty equal to one-twelfth of the rate prescribed by the previous sentence is hereby imposed:

      (1)   On a taxpayer who fails to timely pay tax imposed by this chapter, and

      (2)   Jointly and severally on an employer and any responsible party (as defined in Section 181.06(f)) in any case in which the employer withholds tax but fails to make payments to the Director of Finance, or fails to withhold tax and make payments to the Director of Finance as required by Section 181.06, for each month or fraction of a month that such tax remains unpaid. The Director of Finance may waive or remit all or any portion of such interest or penalties as he, in his discretion, deems proper.

   (b)   Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Director of Finance when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Director of Finance; 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, provided an amended return is filed and the additional tax is paid within three months after the final determination of the federal tax liability.

(Ord. 95-304. Passed 8-16-95.)