305.228 Penalty for second dishonored payment of taxes; waiver

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305.228 Penalty for second dishonored payment of taxes; waiver.

(1)The Department of Revenue shall assess a penalty against any person who has previously tendered a dishonored check, draft, order or electronic funds transfer for the payment of any amount collected by the department and who subsequently makes and tenders to the department any check, draft, order or electronic funds transfer for the payment of any tax or any other amount collected by the department, including amounts assigned for collection under ORS 293.250, that is dishonored by the drawee for the following reasons:

(a)Lack of funds;

(b)Lack of credit;

(c)Because the maker has no account with the drawee; or

(d)Because the maker has ordered payment stopped on the check, draft, order or electronic funds transfer.

(2)The amount of the penalty assessed under subsection

(1)of this section shall be equal to the greater of $25 or three times the amount of the dishonored check, draft, order or electronic funds transfer. The amount of the penalty shall not be greater than $500.

(3)The penalty imposed under this section is in addition to any other penalty imposed by law. Any person against whom a penalty is assessed under this section may appeal to the tax court as provided in ORS 305.404 to 305.560. If the penalty is not paid within 10 days after the order of the tax court becomes final, the department may record the order and collect the amount assessed in the manner as income tax deficiencies are recorded and collected under ORS 314.430.

(4)The department may waive all or any part of the penalty assessed under this section on a showing that there was a reasonable basis for tendering the check, draft, order or electronic funds transfer.

(5)As used in this section, “electronic funds transfer” has the meaning given that term in ORS 293.525. [1985 c.85 §3; 1995 c.650 §111; 1999 c.61 §1]