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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.
| Month 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 4th 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.
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