A. A person who fails to remit taxes collected on or before the due date shall pay, in addition to the tax due, a penalty of five percent of the tax that is then due and unpaid for each month or any fraction of a month during which any part of the tax remains unpaid until a total penalty of 20 percent has accrued, which penalty shall be added to all returns until the tax, penalty, and interest have been paid. For the purposes of this section, partial payments shall be credited first to penalty and interest and then to the tax obligation originally due.

B. Taxes that are not remitted to the borough when due shall draw interest from the date of delinquency until paid at the rate of 15 percent per year. Interest shall not accrue on the late payment penalty assessed by subsection A of this section, but shall accrue on the civil penalty assessed by KIBC 3.55.190. [Ord. 96-19 §3, 1996. Formerly §3.30.170].