Interest & Penalties

Interest, Penalties & Exceptions


A taxpayer will be assessed interest and/or penalties for the delinquent filing of income tax returns and for the late payment of taxes due. The following is the listing of these charges.

Interest


By October 31 of each year, the interest rate that will apply to overdue municipal income taxes during the next calendar year will be posted herein, as required by Ohio Revised Code Section 718.27(F).
The interest rate is calculated by adding five percentage points to the federal short-term rate (rounded to the nearest whole number percent) that was in effect during July of the current year, in accordance with Ohio Revised Code Section 718.27(A)(5).

Based on these requirements, the applicable interest rate is as follows:

Calendar Year
Annual Rate
Monthly Rate
2017
6.0%
.5%
2016
5.0%
0.42%
2015 and prior
18.0%
1.50%


2016 Penalties


Individual and Business
  • $25.00 per month not to exceed $150.00 per each failure to timely file.
  • 15% penalty for a not timely filed payment.
Withholding
  • $25.00 per month not to exceed $150.00 per each failure to timely file.
  • 50% penalty for amounts not timely paid. This is a one-time charge per occurrence.

2015 and Prior Penalties


  • A penalty of $2 per day, not to exceed $50 per year; or one and one-half percent (1.5%) per month or fraction of a month, whichever is greater, is assessed for failure to pay taxes due.
  • A penalty of $2 per day, not to exceed $50 per period or three percent (3%) per month or fraction of a month, whichever is greater, is assessed for failure to remit taxes withheld from employees (withholding tax).
  • A penalty of $2 per day, not to exceed $50 per year is assessed for failure to file a required return, even if no tax is due. The penalty is assessed per year for every year the return has not been filed, until a return is filed.
  • A penalty of $2 per day, not to exceed $50 per year, is assessed for failure to file a required declaration (estimate) of estimated, taxable income.

Exceptions



Interest and penalties will not be imposed on an additional tax assessment made by the Income Tax Department if the return and the tax were paid timely, filed in good faith, and with absence of fraud.

In addition, penalty and interest will not be imposed on an additional tax assessment resulting from a federal audit if the amended return is filed and the additional tax is paid within three months after the federal audit.