§ 311-43. Underpayment of Estimated Taxes.

(a)

In the case of any underpayment of any portion of a tax liability, penalty and interest may be imposed pursuant to Sections 311-73 and 311-75 of this chapter upon the amount of underpayment for the period of underpayment, unless the underpayment is due to reasonable cause as described in subsection (b) of this section. The period of the underpayment shall run from the day the estimated payment was required to be made to the date on which the payment is made. For purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of any previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently required to be paid to avoid any penalty.

(b)

An underpayment of any portion of tax liability determined under subsection (a) of this section shall be due to reasonable cause and the penalty imposed by this section shall not be added to the taxes for the taxable year if any of the following apply:

(i)

The amount of estimated taxes that were paid equals at least ninety percent (90%) of the tax liability for the current taxable year, determined by annualizing the income received during the year up to the end of the month immediately preceding the month in which the payment is due;

(ii)

The amount of estimated taxes that were paid equals at least one hundred percent (100%) of the tax liability shown on the return of the taxpayer for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of twelve (12) months and the taxpayer filed a return with the municipal corporation under Section 311-51 of this chapter for that year; or

(iii)

The taxpayer is an individual who resides in the Municipality but was not domiciled there on the first (1 ^st ) day of January of the calendar year that includes the first (1 ^st ) day of the taxable year.

(c)

Failure to remit estimated taxes may also be subject to criminal penalties as provided in Section 311-999 of this chapter.

(Ordained by Emer. Ord. No. 363-2015, § 2, eff. Jan. 1, 2016)