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.
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Month in Delinquency
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Cumulative Penalty Rate (Upon the 1st day of the month)
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1st Month
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5%
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2nd Month
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10%
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3rd Month
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15%
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4th Month
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20%
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5th Month and beyond
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40%
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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.