§ 99.13. Interest and penalties.

A.

All taxes imposed and all monies 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 rate of one percent per month or fraction thereof.

B.

In addition to interest as provided in subsection A of this section, penalties are imposed as follows:

1.

For failure to pay taxes due, other than taxes withheld, one percent per month or fraction thereof, or five percent of the total tax due, whichever is greater.

2.

For failure to remit taxes withheld from employees, three percent per month or fraction thereof, or ten percent of the total tax due, whichever is greater.

3.

For failure to electronically remit taxes withheld, as prescribed in § 99.09(A), fifty dollars for the first instance and one hundred dollars for each subsequent instance, unless exempted by the Commissioner.

4.

For failure to file income tax returns, fifty dollars for the first instance and one hundred dollars for each subsequent instance.

C.

A penalty shall not be assessed on an additional tax assessment made by the Tax Commissioner when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Commissioner. 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.

At the Commissioner's discretion, the Commissioner may abate up to five thousand dollars of penalty or interest, or both. The Commissioner may abate penalty or interest or both in excess of five thousand dollars only upon written approval of the Director of Finance. The Board of Review may abate penalty or interest, or both, in any amount or on an appeal from the refusal of the Commissioner or the Director of Finance to recommend abatement of penalty and interest.

E.

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.

(Ord. 418-2004: Ord. 824-1998; Ord. 634-1988; Ord. 835-1981; Ord. 1298-1962)