At last night’s meeting of the Borough Assembly, members passed an ordinance to reduce the penalties for late sales tax payments.
We recently spoke to Craig Chapman, KPB Finance Director.
Chapman: “Well the current code applies a interest rate of 15 percent on unpaid taxes, and there’s a penalty of 5 percent per month, up to 25 percent. The Ordinance that’s being proposed would reduce the interest rate to 10 percent and the maximum penalty also to 10 percent.”
We asked Chapman why this Ordinance was put forward…
Chapman: “On an annual basis, we go through the code and review different items to see whether or not they need revision and this is something that’s needed to be revised for a period of time and the current rates are excessive and so we’re proposing to substantially reduce that.”