Penalties Applicable to Delinquent Businesses and Other Taxes
Effective January 1, 2002, the penalty payable on delinquent taxes will be applied at 5% of the principal amount due on the first day of each of the first four months of delinquency. For those businesses more than four months delinquent, an additional 20% penalty is imposed for a total penalty of 40% for long-term delinquents.
Months delinquent and the applicable penalty rateMonth in Delinquency | Cumulative Penalty Rate (Upon the 1st day of the month) |
---|
1st Month | 5% |
2nd Month | 10% |
3rd Month | 15% |
4th Month | 20% |
5th Month and beyond | 40% |
Note: After the 5th month, the penalty rate will have reached the maximum rate of 40%
For 2001 and prior years, the penalty rate was 20% as soon as the taxes were delinquent. Also for those businesses more than four months delinquent, an additional 20% penalty is imposed for a total penalty of 40% for long-term delinquents.