Penalties and Interest

Calculations
All taxes imposed by this chapter, including taxes withheld or required to be withheld from wages by an employer and remaining unpaid after they have become due shall bear interest and penalty on the amount of the unpaid tax, such as (Ordinance 01-02-2004.  Passed January 6, 2004):
  • Such interest rate shall be computed by using the federal short-term rate (see below), rounded to the nearest whole number percent plus 3% for interest on the amount of unpaid tax.
  • Such interest rate computation shall be made public on the 15th day of October of each year.
  • In addition thereto, a penalty shall be assessed of 1% per month for each month the tax remains unpaid. The penalty assessed in total shall be a minimum of $25, but shall not exceed a maximum 50% of the unpaid tax. Each reporting period for which nonpayment of withheld taxes is not made shall constitute separate penalties as herein above described, for each such period or periods. The City Auditor may abate interest or penalties or both, and upon appeal from the refusal of the City Auditor to so recommend, the Board of Review may nevertheless abate interest or penalty, or both.
  • Penalties shall be assessed for failure to file income tax returns. A penalty of $25 shall be assessed for the first instance of failure to file, and $50 for each subsequent instance.
Federal Short-term Rate
The rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less.

The interest rate prescribed by O.R.C. 5703.47:
  • Calendar year 2005 - 5%
  • Calendar year 2006 - 6%
  • Calendar year 2007 - 8%
  • Calendar year 2008 - 8%
  • Calendar year 2009 - 5%
  • Calendar year 2010 - 4%
  • Calendar year 2011 - 4%
  • Calendar year 2012 - 3%
  • Calendar year 2013 - 3%

For more information, learn about the Ohio Department of Taxation Interest Rates.