39-51-1301. Penalty and interest on past-due taxes. (1) Taxes unpaid on the date on which they are due and payable, as provided by 39-51-1103(1) and (2) and 39-51-1125, that are paid by the end of the month following the due date are subject to a penalty assessment of $10 or 10% of the taxes due, whichever is greater. If the taxes are not paid by the end of the month following the due date, the employer is subject to a penalty assessment of $15 or 15% of the taxes due, whichever is greater. All past-due taxes bear interest at the rate of 18% a year, to be prorated on a daily basis.
     (2) A penalty of $40 must be assessed whenever, as the result of a willful refusal of an employer to furnish wage information or pay taxes on time, the department issues a subpoena to obtain wage information or makes a summary or jeopardy assessment pursuant to 39-51-1302.
     (3) There is an account in the federal special revenue fund. Penalties and interest collected under this section must be deposited in that account. Money deposited in that account and appropriated to the department may only be used by the department to administer this chapter, including the detection and collection of unpaid taxes and overpayments of benefits to the extent that federal grant revenue is less than amounts appropriated for this purpose. Money in the account not appropriated for these purposes must be transferred by the department to the unemployment insurance trust fund at the end of each fiscal year.
     (4) When failure to pay taxes on time was not caused by willful intent of the employer, the department may abate the penalty and interest.
     (5) All money accruing to the unemployment insurance trust fund from interest and penalties collected on past-due taxes must be used solely for the payment of unemployment insurance benefits and may not be used for any other purpose.

     History: En. Subd. (a), Sec. 14, Ch. 137, L. 1937; amd. Sec. 5, Ch. 137, L. 1939; amd. Sec. 8, Ch. 164, L. 1941; amd. Sec. 3, Ch. 233, L. 1943; amd. Sec. 5, Ch. 190, L. 1945; amd. Sec. 24, Ch. 368, L. 1975; amd. Sec. 1, Ch. 197, L. 1977; R.C.M. 1947, 87-135; amd. Sec. 1, Ch. 47, L. 1979; amd. Sec. 2, Ch. 57, L. 1979; amd. Sec. 19, Ch. 685, L. 1979; amd. Sec. 1, Ch. 2, L. 1981; amd. Sec. 1, Ch. 349, L. 1981; amd. Sec. 2, Ch. 369, L. 1983; amd. Sec. 1, Ch. 555, L. 1983; amd. Sec. 1, Ch. 13, Sp. L. June 1986; amd. Sec. 11, Ch. 234, L. 1987; amd. Sec. 12, Ch. 373, L. 1991; amd. Sec. 2, Ch. 639, L. 1991; amd. Sec. 8, Ch. 195, L. 1995.