Penalty and Interest Rates

Penalty Rates - Unpaid Income and Estimated Income Tax                          (Non-Withholding)

Applicable to Taxable Years Beginning on or After jANUARY 1, 2016

PENALTY

A penalty may be imposed for failure of a taxpayer to pay City income tax when due and for failure to make estimated payments of City income tax when due, equal to fifteen percent (15%) of the amount not timely paid.

LATE FILING PENALTY

A late filing penalty may be imposed for failure of a taxpayer to file a return required, other than a return for estimated City income tax, by the due date or by the date resulting from extension of the original due date, twenty-five dollars ($25) for each failure to timely file each such return for each month, or any fraction of a month, during which the return remains unfiled, regardless of the liability shown on each such return. The late filing penalty shall not exceed one hundred fifty dollars ($150) for each failure to file a timely return required regardless of cause.

Applicable to Taxable Years BEFORE January 1, 2016

PENALTY

A penalty may be imposed for failure of a taxpayer to pay city income tax due, other than taxes withheld, two and one-half percent (2.5%) of such outstanding tax per month or fraction thereof that the tax remains outstanding, or 10% of the outstanding liability, whichever is greater, with the penalty on to exceed fifty percent (50%) of such outstanding city income tax liability.

LATE FILING PENALTY

A late filing penalty may be imposed for failure of a taxpayer to file a city income tax return by the due date or by the date resulting from extension, fifty dollars ($50) per month or fraction thereof that the city income tax return is not filed, with the penalty not to exceed five hundred dollars ($500). The penalty provided in Section 36.109(B) shall be imposed regardless of cause.

State of Ohio Laws governing interest and penalties can be found at oHIO rEVISED CODE SECTION 718.27.

 Penalty Rates – Unpaid Employer Withholding Tax

APPLICABLE TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2016

PENALTY

A penalty may be imposed for failure of a taxpayer to remit City income taxes withheld or required to be withheld from payment of qualifying wages of employees when due, equal to fifty percent (50%) of the amount not timely paid.

LATE FILING PENALTY

A late filing penalty may be imposed for failure of an employer, agent of an employer, or other payor to file a return required, other than a return for estimated City income tax, by the due date or by the date resulting from extension of the original due date, twenty-five dollars ($25) for each failure to timely file each such return for each month, or any fraction of a month, during which the return remains unfiled, regardless of the liability shown on each such return. The late filing penalty shall not exceed one hundred fifty dollars ($150) for each failure to file a timely return required regardless of cause.

Applicable to Taxable Years BEFORE January 1, 2016

PENALTY

A penalty may be imposed for failure to remit city income taxes withheld or required to be withheld from employees, five percent (5%) of such remitted city income tax per month or fraction thereof that the unremitted tax remains outstanding, or 10% of the outstanding unremitted tax, whichever is greater, with the penalty not to exceed fifty percent (50%) of such outstanding unremitted tax.

LATE FILING PENALTY

A late filing penalty may be imposed for failure to remit city of an employer, agent of an employer, or other payor to file a return required, other than a return for estimated City income tax, by the due date or by the date resulting from extension of the original due date, twenty-five dollars ($25) for each failure to timely file each such return for each month, or any fraction of a month, during which the return remains unfiled, regardless of the liability shown on each such return. The late filing penalty shall not exceed one hundred fifty dollars ($150) for each.

STATE OF OHIO LAWS GOVERNING INTEREST AND PENALTIES CAN BE FOUND AT OHIO REVISED CODE SECTION 718.27.

Interest Rates - Unpaid Income tax, Estimated Income Tax 

(Non-Withholding) and Withholding Tax

EFFECTIVE JANUARY 1, 2017

Interest

Interest shall be imposed on all unpaid income, estimated income tax and employer withholding tax. The interest rate to be applied each calendar year is the federal short-term rate, rounded to the nearest whole number percent, plus five percent (5%). The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined under Section 1274 of the Internal Revenue Code.

Calendar
Year
Annual Interest
Rate
Monthly
Rate
20197.0%.583%
20186.0%.500%
20176.0%.500%
20165.0%.417%
*20156.25%.521%
*20146.25%.521%
*20136.25%.521%
*20126.25%.521%

*All city income taxes imposed and monies withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid five (5) days after they become due shall bear interest at a rate equal to the prime rate plus three percentage points (3%). The interest rate for any year will be determined on the first business day of December of the previous year from the prime rate published in the Wall Street Journal.

STATE OF OHIO LAWS GOVERNING interest AND PENALTIES can BE FOUND AT OHIO REVISED CODE SECTION 718.27.