Section 11-2714. Interest and penalties

(a) Interest on underpayments. If
  any annual vault  charge  is  not  paid  on  or  before  the  last  date
  prescribed  for payment (without regard to any extension of time granted
  for  payment),  interest  on  such  amount  at  the  rate  set  by   the
  commissioner of finance pursuant to subdivision (g) of this section, or,
  if  no rate is set, at the rate of seven and one-half percent per annum,
  shall be paid for the period from such last date to the date of payment.
  In computing the amount of interest to be paid, such interest  shall  be
  compounded  daily.  Interest under this subdivision shall not be paid if
  the amount thereof is less than one dollar.
    (b) * (1) Failure to file return. (A) In case of  failure  to  file  a
  return  under  this chapter on or before the prescribed date (determined
  with regard to any extension of time for filing),  unless  it  is  shown
  that  such  failure  is  due  to reasonable cause and not due to willful
  neglect, there shall be added to the amount  required  to  be  shown  as
  vault charge on such return five percent of the amount of such charge if
  the  failure  is  for  not  more than one month, with an additional five
  percent for each additional month or fraction thereof during which  such
  failure continues, not exceeding twenty-five percent in the aggregate.
    (B)  In  the  case  of  a failure to file a vault charge return within
  sixty days of the date prescribed for filing of such return  (determined
  with  regard  to  any  extension of time for filing), unless it is shown
  that such failure is due to reasonable cause  and  not  due  to  willful
  neglect, the addition to the vault charge under subparagraph (A) of this
  paragraph  shall  not  be less than the lesser of one hundred dollars or
  one hundred percent of the amount required to be shown as  vault  charge
  on such return.
    (C)  For  purposes  of  this  paragraph,  the  amount  of vault charge
  required to be shown on the return shall be reduced by the amount of any
  part of the charge which is paid on or before the  date  prescribed  for
  payment of the charge and by the amount of any credit against the charge
  which may be claimed upon the return.
    * NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
    (2) Failure to pay vault charge shown on return. In case of failure to
  pay  the  amount  shown as vault charge on a return required to be filed
  under this chapter on or before the  prescribed  date  (determined  with
  regard  to  any  extension of time for payment), unless it is shown that
  such failure is due to reasonable cause and not due to willful  neglect,
  there  shall be added to the amount shown as vault charge on such return
  one-half of one percent of the amount of such charge if the  failure  is
  not  for more than one month, with an additional one-half of one percent
  for each additional month or fraction thereof during which such  failure
  continues,  not  exceeding twenty-five percent in the aggregate. For the
  purpose of computing the addition for any  month  the  amount  of  vault
  charge shown on the return shall be reduced by the amount of any part of
  the charge which is paid on or before the beginning of such month and by
  the  amount  of  any credit against the charge which may be claimed upon
  the return. If the amount of vault charge required  to  be  shown  on  a
  return is less than the amount shown as such charge on such return, this
  paragraph shall be applied by substituting such lower amount.
    (3)  Failure  to  pay  vault charge required to be shown on return. In
  case of failure to pay  any  amount  in  respect  of  any  vault  charge
  required to be shown on a return required to be filed under this chapter
  which  is  not  so  shown  (including  a  determination made pursuant to
  section 11-1106 of this chapter) within ten days of the date of a notice
  and demand therefor, unless it is shown that  such  failure  is  due  to
  reasonable cause and not due to willful neglect, there shall be added to
  the  amount of vault charge stated in such notice and demand one-half of

  one percent of such charge if the failure  is  not  for  more  than  one
  month,  with  an  additional one-half of one percent for each additional
  month or fraction thereof  during  which  such  failure  continues,  not
  exceeding  twenty-five  percent  in  the  aggregate.  For the purpose of
  computing the addition for any month, the amount of vault charge  stated
  in  the  notice and demand shall be reduced by the amount of any part of
  the charge which is paid before the beginning of such month.
    * (4) Limitations on additions.
    (A) With respect to any return,  the  amount  of  the  addition  under
  paragraph  one of this subdivision shall be reduced by the amount of the
  addition under paragraph two of this subdivision for any month to  which
  an  addition  applies  under  both  paragraphs  one and two. In any case
  described in subparagraph (B) of paragraph one of this subdivision,  the
  amount  of  the  addition  under such paragraph one shall not be reduced
  below the amount provided in such subparagraph.
    (B) With respect to any return, the maximum  amount  of  the  addition
  permitted  under paragraph three of this subdivision shall be reduced by
  the amount of the addition  under  paragraph  one  of  this  subdivision
  (determined  without  regard  to subparagraph (B) of such paragraph one)
  which is attributable to the charge for which the notice and  demand  is
  made and which is not paid within ten days of such notice and demand.
    * NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
    * (c)   Underpayment  due  to  negligence.  (1)  If  any  part  of  an
  underpayment of a vault charge  is  due  to  negligence  or  intentional
  disregard  of  this  chapter  or any rules or regulations hereunder (but
  without intent to defraud), there shall be added to the charge a penalty
  equal to five percent of the underpayment.
    (2) There shall be added to the charge  (in  addition  to  the  amount
  determined  under  paragraph one of this subdivision) an amount equal to
  fifty percent of the interest payable  under  subdivision  (a)  of  this
  section  with  respect  to  the portion of the underpayment described in
  such  paragraph  one  which  is  attributable  to  the   negligence   or
  intentional  disregard referred to in such paragraph one, for the period
  beginning on the last  date  prescribed  by  law  for  payment  of  such
  underpayment  (determined without regard to any extension) and ending on
  the date of the assessment of the charge (or, if earlier,  the  date  of
  the payment of the charge).
    * NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
    * (d) Underpayment due to fraud. (1) If any part of an underpayment of
  a  vault  charge  is  due to fraud, there shall be added to the charge a
  penalty equal to fifty percent of the underpayment.
    (2) There shall be added to the charge (in  addition  to  the  penalty
  determined  under  paragraph one of this subdivision) an amount equal to
  fifty percent of the interest payable  under  subdivision  (a)  of  this
  section  with  respect  to  the portion of the underpayment described in
  such paragraph one which  is  attributable  to  fraud,  for  the  period
  beginning  on  the  last  day  prescribed  by  law  for  payment of such
  underpayment (determined without regard to any extension) and ending  on
  the  date  of  the assessment of the charge (or, if earlier, the date of
  the payment of the charge).
    (3) The penalty under this subdivision shall be in lieu of  any  other
  addition  to  the vault charge imposed by subdivision (b) or (c) of this
  section.
    * NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
    (e) Additional penalty. Any person who, with fraudulent intent,  shall
  fail  to  pay  any  vault  charge  imposed  by this chapter, or to make,
  render, sign or certify any return, or to supply any information  within
  the  time  required  by  or  under  this  chapter, shall be liable for a

  penalty of not more than one thousand dollars, in addition to any  other
  amounts  required  under  this  chapter  to  be  imposed,  assessed  and
  collected by the commissioner of finance. The  commissioner  of  finance
  shall  have  the  power,  in  his or her discretion, to waive, reduce or
  compromise any penalty under this subdivision.
    (f) The interest and penalties imposed by this section shall  be  paid
  and  disposed of in the same manner as other revenues from this chapter.
  Unpaid interest and penalties may be enforced in the same manner as  the
  vault charge imposed by this chapter.
    (g)  (1) Authority to set interest rates. The commissioner of finance,
  shall set the rate of interest to be paid pursuant to subdivision (a) of
  this section, but if no such rate of interest is set, such rate shall be
  deemed to be set at seven and one-half  percent  per  annum.  Such  rate
  shall  be  the  rate prescribed in paragraph two of this subdivision but
  shall not be less than seven and one-half percent per  annum.  Any  such
  rate set by the commissioner of finance shall apply to vault charges, or
  any  portion thereof, which remain or become due on or after the date on
  which such rate becomes effective and shall apply only with  respect  to
  interest  computed  or  computable  for  periods  or portions of periods
  occurring in the period in which such rate is in effect.
    (2) General rule. The rate of  interest  set  under  this  subdivision
  shall  be  the  sum of (i) the federal short-term rate as provided under
  paragraph three of this subdivision, plus (ii) seven percentage points.
    (3) Federal short-term rate. For purposes of this subdivision:
    (A) The federal short-term rate for any month  shall  be  the  federal
  short-term  rate  determined  by  the  United  States  secretary  of the
  treasury during such month in accordance with subsection (d) of  section
  twelve  hundred  seventy-four  of  the  internal revenue code for use in
  connection with section six  thousand  six  hundred  twenty-one  of  the
  internal  revenue  code.  Any  such rate shall be rounded to the nearest
  full percent (or, if a multiple of one-half of one  percent,  such  rate
  shall be increased to the next highest full percent).
    (B) Period during which rate applies.
    (i)   In   general.   Except  as  provided  in  clause  (ii)  of  this
  subparagraph, the federal short-term rate for the first  month  in  each
  calendar quarter shall apply during the first calendar quarter beginning
  after such month.
    (ii)  Special  rule  for  the  month  of  September,  nineteen hundred
  eighty-nine. The  federal  short-term  rate  for  the  month  of  April,
  nineteen  hundred  eighty-nine  shall  apply with respect to setting the
  rate  of  interest  for  the  month  of  September,   nineteen   hundred
  eighty-nine.
    (4)  Publication  of  interest rate. The commissioner of finance shall
  cause to be published in the city record,  and  give  other  appropriate
  general notice of, the interest rate to be set under this subdivision no
  later  than  twenty days preceding the first day of the calendar quarter
  during which such interest rate applies. The setting and publication  of
  such  interest  rate  shall  not  be  included  within  paragraph (a) of
  subdivision five of section one thousand forty-one of the  city  charter
  relating to the definition of a rule.
    * (h)  Miscellaneous.  (1)  The  certificate  of  the  commissioner of
  finance to the effect that a vault charge has  not  been  paid,  that  a
  vault  has  not  been  licensed,  that a return has not been filed, that
  access has not been allowed, or that information has not  been  supplied
  pursuant  to  the  provisions  of  this  chapter,  shall  be presumptive
  evidence thereof.
    (2) Cross-reference: For criminal penalties, see chapter forty of this
  title.

    * NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14