Penalties Rates

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. 

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 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.