Sec. 36-126.9. Penalties and interest.
(1) A penalty of ten percent (10%) of the tax shall be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due dates. A late filing penalty shall be imposed by the commissioner of the revenue if the application is late. If a late filing penalty is imposed, billings and collections shall impose a late payment penalty of ten percent (10%) if the tax is not paid within thirty (30) days. If a late filing penalty is not imposed, billings and collections shall impose a ten percent (10%) late payment penalty if the tax is not paid by the appropriate due dates. However, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the commissioner of the revenue, if the application and, if applicable, the return were made in good faith and the understatement of the tax was not due to any fraud, reckless or intentional disregard of the law by the taxpayer, there shall be no late filing penalty assessed with the additional tax. If any additional assessment of tax by the commissioner of the revenue is not paid within thirty (30) days, the billings and collections division shall impose a ten percent (10%) late payment penalty. If the failure to file or pay was not the fault of the taxpayer, the penalties shall not be imposed, or if imposed shall be abated by the official who assessed them. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.
(2) Acted responsibly means that: (i) the taxpayer exercised the level of reasonable care that a prudent person would exercise under the circumstances in determining the filing obligations for the business and (ii) the taxpayer undertook significant steps to avoid or mitigate the failure, by requesting the appropriate extension.
(3) Events beyond the taxpayer's control include, the unavailability of records due to fire or other casualty; the unavoidable absence (e.g., due to death or serious illness) of the person with sole responsibility with tax compliance; or the taxpayer's reasonable reliance in good faith upon erroneous written information from the commissioner of the revenue who was aware of the relevant facts relating to the taxpayer's business when he provided the erroneous information.
(4) Unless otherwise specifically provided by law, a violation of any provision of this chapter shall constitute a class 2 misdemeanor. The conviction of any person or entity for a violation of any provision of this article and the imposition of a penalty therefore shall not relieve such person from liability for any tax imposed upon him by this article.
(1) Interest shall be charged on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment. Whenever an assessment of additional or omitted tax by the commissioner of the revenue is found to be erroneous, all interest and penalty charged and collected on the amount of the assessment found to be erroneous shall be refunded together with interest on the refund from the date of payment or the due date, whichever is later. Interest shall be paid on the refund of any tax paid under this article from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged in paragraph (2) below. However, if such erroneous payments were in any way due to the fault or negligence of the taxpayer, no interest shall be paid on the refund of the erroneously paid taxes.
(2) Interest at the rate of ten percent (10%) per annum from the first day of the month following the month in which taxes are required to be paid, shall be collected upon the principal and applicable penalty remaining unpaid.
(3) No interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year. No interest shall be paid on a refund or charged on a late payment, provided the refund or the late payment is made not more than thirty (30) days from the date of the payment that created the refund or the due date of the tax, whichever is later. (Ord. No. O- 96-319, 12-10-96, eff. 1-1-97; Ord. No. O-04-124, 9-14-04)
Last updated date: 10/23/2006 4:15:21 PM