Interest and Penalties

8:01 Interest

A. Except as provided in Sections 8:03 and 8:04 hereof, all taxes imposed and all monies withheld or required to be withheld by employers and all installments of estimated taxes required to be paid under the provisions of the Ordinance and remaining unpaid after they have become due, shall bear interest in addition to the amount of the unpaid tax, withholdings or installments of estimated tax at the rate of one half percent (1/2%) for the first thirty days after the due period. After thirty days the interest shall be a rate equal to the prime rate of interest per annum published in the Wall Street Journal on the thirty first (31st) day after the tax was due.

8:02 Penalties

A. In addition to interest as provided in Section 8:00 hereof, penalties based on the unpaid tax are hereby imposed as follows:

1. For failure to pay taxes or estimated taxes due other than taxes withheld, one and one half percent (1 1/2%) for the first thirty (30) days after the tax was due. After thirty days the penalty shall be two percent (2%) per month or any part thereof.

2. For failure to remit taxes withheld from employees, ten percent (10%) per month or fraction thereof.

3. For failure to file an income tax return within thirty (30) days of April 15th of the current tax year, or within thirty (30) days of the due date of a fiscal year filing, a penalty of twenty five dollars ($25.00) per day up to a maximum of five hundred dollars ($500.00) shall be imposed on all taxpayers for each income tax not filed as prescribed herein. An additional penalty equal to fifty percent (50%) of the income tax due on each return not filed as prescribed herein, shall be assessed. All penalties shall be due and payable within ten (10) days of written notice of the same by the taxpayer.

 8:03 Exceptions

A. No penalty shall be assessed on additional taxes found on audit to be due when a return was timely filed in good faith and the tax paid thereon within the prescribed time.

B. In the absence of fraud, neither penalty or interest shall be assessed on additional taxes resulting from a Federal audit for federal income tax purposes provided an amended return is filed and the additional tax paid within three (3) months after the final determination of the federal tax liability.

C. A taxpayer or employer shall have thirty (30) days after receipt of notice of any proposed imposition of interest and penalties within which to file a written protest or explanation with the Administrator. If no protest or explanation is filed within the prescribed time, the proposed imposition of interest and penalty shall become the final assessment. Upon filing of a written protest or explanation, the Tax Administrator shall redetermine the assessment which may or may not be the same as the proposed assessment.

8:04 Appeal From Assessment

A. Either the Tax Administrator of the Board of Review may abate penalty or interest, or both, upon showing of good cause.

8:05 Violations

A. Any person who shall:

1. Fail, neglect or refuse to make any return or declaration required by the Ordinance; or

2. Make any incomplete, false or fraudulent return; or

3. Intentionally or willfully fail, neglect or refuse to pay the tax, penalties or interest imposed by the Ordinance; or

4. Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Administrator; or

 5. Refuse to permit the Administrator or any duly authorized agent to examine his books, records, papers and federal income tax returns relating to the income or net profits or a taxpayer; or

6. Fail to appear before the Administrator and to produce his books, records, papers or federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Administrator; or

7. Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer; or

8. Fail to comply with the provisions of the Ordinance or any order or subpoena of the Administrator authorized thereby;

9. Give to an employer false information as to his true name, correct social security number and resident address or fail to promptly notify an employer of any change in resident address and date thereof; or

10. Fail to use ordinary diligence in maintaining proper records of employee's residence and address, total wages paid and municipal tax withheld, or knowingly give the Administrator false information; or

11. Attempt to do anything whatsoever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this Ordinance;

shall be guilty of a misdemeanor and shall be fined not more than Five Hundred Dollars ($500.00) or imprisoned not more than six months or both for each offense or otherwise punished pursuant to the pertinent Ordinance.

8:06 Limitations on Prosecutions

A. Civil actions to recover municipal income taxes, penalties and interest on municipal income taxes shall be brought within three (3) years after the tax was due or the return was filed, whichever is later.

 B. Prosecutions under the Ordinance shall be commenced within three (3) years after the commission of the offense provided that in the case of fraud, failure to file a return or the omission of 25% or more of income required to be reported, prosecutions may be commenced within six (6) years after the commission of the offense.

8:07 Failure to Receive Forms is no Excuse

A. The failure of any taxpayer to receive or procure a return, declaration or other required form shall not excuse him from making any information return, declaration of return, from filing such form or from paying the tax.