6.04.080 Penalties and Interest.

City Code Section

(Amended by Ordinance Nos. 187339, 188170 and 189557, effective July 12, 2019.)

A.  Original delinquency.  Any Operator who has not been granted an extension of time for remittance of tax due and who fails to remit any tax imposed by this Chapter on or before the due date will pay a penalty of 10 percent of the tax due in addition to the tax.  There is no grace period between the due date and the assessment of a penalty and interest; the day following the due date is considered to be the delinquent date.

B.  Continued delinquency.  Any Operator who fails to pay in full on or before the due date of an original delinquency notice will pay a second delinquency penalty of 15 percent of the amount of the tax due plus all penalty and interest assessments at the time of the continued delinquency calculation.

C.  Fraud.  If the Division determines that the nonpayment of any amount due under this Chapter is due to fraud or intent to evade the provisions thereof, a penalty of 25 percent of the tax will be added in addition to the penalties stated in paragraphs A. and B. of this Section and interest stated in paragraph D. of this Section.  This penalty is calculated on the entire amount due, including any penalties and interest previously assessed at the time of the calculations.

D.  Interest.  In addition to the penalties imposed, any Operator who fails to file or pay any tax imposed by this Chapter will pay interest at the rate of 1 percent per month or fraction thereof without proration for portions of a month, on the amount of the tax due from the first day following the original due date.  Interest will be compounded monthly until the amount due is paid in full.

E.  Penalties and interest merged with tax.  Every penalty imposed and such interest as accrues under the provisions of this Section will be merged with and become a part of the tax required to be paid.  If delinquency continues, requiring additional penalty and interest calculations, previously assessed penalty and interest are added to the tax due.  This amount becomes the new base for calculating new penalty and interest amounts.  This merging continues each month until the full balance is paid.

F.  Petition for waiver.  Any Operator who fails to pay the tax within the time stated must pay the tax, penalties and interest assessed; however, the Operator may petition the Director for waiver and refund or credit of all or part of the penalty assessed and the Director may, if a good and sufficient reason is shown, waive some or all of the penalty assessment.  Interest will not be waived except by written policy.

G.  Any violation of Subsections 6.04.040 C. or D., Booking Agent and Operator Duties, shall be subject to a civil penalty of $1,000 per violation per day.  Each booking transaction or fee collected shall be considered a separate violation.