A. Original Delinquency. Any operator who fails to remit room tax collected by the operator other than the five percent administrative fee prior to the date the remittance becomes delinquent shall pay a penalty of 10 percent of the amount due.

B. Continued Delinquency. Any operator who failed to remit any delinquent amounts within 30 days after the date the remittance first became delinquent shall pay a second delinquency penalty of 15 percent of the amount due. The second delinquency penalty does not apply if the operator has, in good faith, filed a return accompanied by remittance of the amount calculated on the return, and pays the delinquent amount within 30 days after notification of the error. For example, if a good faith error is discovered during an audit three years later and the operator pays within 30 days of notification of the audit result, the second delinquency penalty will not be charged.

C. Fraud. If the Tax Administrator determines that failure to make any remittance is intended to evade the provisions of this chapter, a penalty of 25 percent of the amount due is imposed in addition to all other penalties and remittance obligations.

D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax by the delinquency date shall pay interest at the rate of one percent per month or fraction of a month without proration for portions of a month on the amount due to the City, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

E. Penalties Merged with Tax. Every penalty imposed and accrued interest shall be merged with and become a part of the amount of room tax to be remitted by the operator.

F. Petition for Waiver. An operator who has paid penalties may petition the City Council for waiver and refund of the penalty or a portion of the penalty. The City Council may waive and direct a refund of the penalty or a portion of the penalty for good cause.

G. Settlements. The Tax Administrator may, after consultation with the City Attorney, adjust or enter into a settlement as regards any amount believed to be due if, as a result of a bankruptcy filing, foreclosure, bona fide legal or factual dispute, or similar circumstance, it is in the best interest of the City. [Ord. NS-2410, 2021; Ord. NS-2163, 2011]