18.1.2.260 Civil Penalties, Interest and Administrative Costs.

(a) Penalty for Failure to File or Failure to Pay. If any taxpayer fails to timely file any tax return or make a payment when due, there shall be a penalty in an amount of two percent (2%) per month or any fraction of a month from the date the tax was due, or return required to be filed, multiplied by the amount of tax due but not paid, not to exceed twenty percent (20%) of the tax due but not paid.

(b) Willful Intent to Evade or Defeat Tax. If along with a failure to pay an amount of tax when due, there is a willful intent to evade or defeat a tax, a penalty of fifty percent (50%) of the tax shall be added to the tax required to be paid.

(c) False Information, Failure to Cooperate, or Other Violation. Any taxpayer who files or furnishes any false information, who fails to cooperate with the Pueblo, or its agent, in the conduct of its duties under this Act, or who otherwise violates any other section of this Act, unless specifically provided for in a specific tax, shall be imposed a civil penalty of not more than $500 for each violation, in addition to any other penalties prescribed by law.

(d) No penalty shall be assessed against a taxpayer if:

(1) the failure to pay an amount of tax due results from a mistake of law made in good faith and on reasonable grounds; or

(2) demand is made for payment of a tax, including the penalty imposed pursuant to this section, and if the tax is paid within ten (10) days after the date of such demand, no penalty shall be imposed for the period after the date of the demand with respect to the amount paid; or

(3) the tax is deemed paid by crediting overpayments found in an audit of multiple periods.

(e) Waiver of Penalties. For good cause shown, the Tax Administrator may, in their discretion, relieve the taxpayer from all or part of the penalties imposed under this section.

(f) Interest. Interest at an annual rate of twelve percent (12%) simple interest which shall accrue against the amount of delinquent taxes due and it shall be applied on a daily basis until the date the taxes due are paid.

(g) Administrative Costs. A taxpayer failing to pay any taxes at the time due may be charged for extraordinary administrative costs incurred in collecting the unpaid amount, including, but not limited to, attorney fees and other costs of collection. For good cause shown, the Tax Administrator may, in their discretion, relieve the taxpayer from all or part of the charges imposed under this section.