(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, effective 01/01/2001, shall bear interest at the rate of one and one-half percent (1-1/2%) per month until paid in full.

(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows effective 01/01/2001:

(1) For failure to pay taxes due other than taxes withheld, one and one-half percent (1-1/2%) per month, or twenty dollars ($20.00), whichever is greater.

(2) For failure to remit taxes withheld from employees, five percent (5%) per month, or fifteen percent (15%) of the total tax due, whichever is greater.

(3) Penalties shall be imposed by the Tax Administrator on those taxpayers failing to file their tax returns when due, and who are not otherwise exempt from filing requirements by virtue of Section 191.04. A civil penalty of twenty-five dollars ($25.00) shall be imposed for the first instance of failure to file when due, and fifty dollars ($50.00) for each subsequent instance.

(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 tax paid thereon within the time prescribed by the Tax Administrator. Furthermore, 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 the final determination of the federal tax liability.

(d) At the Tax Administrator's discretion, the Tax Administrator may abate up to five thousand dollars ($5,000) of penalty or interest, or both, and upon recommendation of the Tax Administrator, the Board of Appeal may abate penalty or interest, or both, of a taxpayer who appeals for such abatement under the provisions of Section 191.16 (Board of Appeal) subsequent to a denial of such abatement by the Tax Administrator.

(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 for 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. 25-03. Passed 10-20-03.)