ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Amending CHAPTER 27 TAXATION Article VII Sec 27-151; Article VIII Sec 27-180; Article IX Sec 27-204; Article XI Sec 27-257; Article XII Sec 27-263; Article XV Sec 27-306; Article XVI Sec 27-316 And Article XVIII Sec 27-334 of the CODE of the City of Peoria Pertaining to the Calculation of the Penalties for LATE PAYMENT of Hotel Taxes, Restaurant Taxes, Amusement Taxes, Utility Taxes, Motor Fuel Taxes, Water Utility Taxes, Gas Utility Taxes and Alcoholic Liquor Sold At Retail Establishment Taxes
Body
BACKGROUND: This request seeks to amend the City's existing calculation of penalties and interest on late payments of taxes under Chapter 27 Taxation to allow the new financial software, Tyler Munis, to calculate the penalty on late payments of taxes. Currently, the City assesses a late payment penalty of 5% on the amount of tax not transmitted to the City as well as a 2% interest penalty per month. The new financial software does not have the capability to calculate both a penalty and a late payment interest. Therefore, in order to improve efficiencies and use the new software to our advantage, the attached ordinance proposes establishing a penalty for late payment of 3% to be added to the amount of tax not transmitted to the City each month, or fraction thereof, until the balance is fully remitted.
FINANCIAL IMPACT: It is anticipated that the revenue impact will be neutral, however, efficiencies will be gained by using the new financial software to calculate the penalty and eliminate the need to manually calculate the penalty and interest for establishments who do not pay timely.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: The penalty for late payment of taxes under Chapter 27 Taxation will be calculated at 3.00% of the amount of tax not transmitted to the City and will be added each month or fraction thereof until the ta...
Click here for full text