Unpaid Municipal Income Tax - PenaltyA penalty may be imposed on unpaid income tax and unpaid estimated income tax equal to fifteen percent (15%) of the amount not timely paid. A penalty may be imposed on unpaid withholding tax equal to fifty percent (50%) of the amount not timely paid. Failure to File Timely - PenaltyA penalty may be imposed on a municipal income tax return, other than an estimated income tax return, not timely filed, of twenty-five dollars ($25.00) each month during which the return remains unfiled pursuant to Ohio Revised Code 718.27. The penalty shall not exceed $150.00 for tax years 2016 – 2022 or $25.00 for tax years 2023 and beyond.Other PenaltiesIn addition to the penalties above, the Ohio Revised Code sec 718.99 also provides criminal penalties for failure to comply with the income tax ordinance of up to one thousand dollars or up to six months imprisonment for each offense.Charge for Dishonored RemittanceThere will be a fifty dollar ($50.00) charge to anyone who provides a remittance that is subsequently dishonored by the bank upon which it is drawn.Unpaid Municipal Income Tax - InterestOhio Revised Code 718.27 requires the Tax Administrator to publish, by October 31st , the established interest rate for tax underpayments based on the federal short-term rate that will apply during the next calendar year.Interest shall be imposed per annum, on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax. The interest rate used shall be 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. Note: Interest applies to any balance of tax due that is not paid by the due date of a return, even if the return is filed under extension. |
| Calendar Year | Yearly Interest Rate | ||
| 2020 | 7.00% | ||
| 2021 | 5.00% | ||
| 2022 | 5.00% | ||
| 2023 | 7.00% | ||
| 2024 | 10.00% | ||
| 2025 | 10.00% |
| Withholding Tax (a) | Annual Returns (b) | |||||
|---|---|---|---|---|---|---|
| Municipality | Penalty per month | Interest per month | Penalty per month | Interest per month | Minimum Penalty | |
NOTES
(a) Failure to remit withholding tax
(b) Failure to make estimated tax payments and the late filing of annual returns
(c) Full annual penalty assessed upon filing