Penalty and Interest Added for Filing or Paying Late
The Revenue Act includes provisions for charging penalty and interest if a taxpayer fails to pay a tax within the time specified.
Interest is calculated by multiplying the current interest rate.
PENALTY – After February 28, 2003
If a “BILL FOR TAXES DUE (INTENT TO ASSESS)” is issued after February 28, 2003:
Penalty is 5 percent of the total unpaid tax due for the first two months. After two months, 5% of the unpaid tax amount is assessed each month. The maximum late penalty is equal to 25% of the unpaid tax owed.