How do I calculate Penalty and Interest? • When filing a sales tax return late, penalties and interest are calculated on the amount owed. Following is the formula for calculating penalties and interest: Example: Late filing of August 2004 sales tax return with $100.00 due to the City of Petersburg. Paid on October 10, 2004. (10 days for penalty and interest) Penalty: $100.00 x 8% = 8.00 Interest: $100.00 x 10.5% = 10.50 / 365 (days in one year) = .03 x 10 (days late)= $0.30 Total penalty and interest due on $100.00 is $8.30. NOTE: Penalties are calculated on a monthly basis and interest is accumulated on a daily basis. When can I take the Compensatory Discount? • The Compensatory discount is one percent (1%) with a maximum of $50.00. The compensatory discount can be taken on any return sent, along with payment, in on or before the 15th of the following month.
What items are considered sales tax exempt for Senior Citizens? • Senior Citizens are exempt from taxes on a personal basis. Any purchases or services done for rentals, businesses, etc owned by a senior citizen are subject to sales tax. A person is not considered exempt until he/she have received a sales tax exempt card from the City. Spouses of Senior Citizens must have their own card.
Are Non Profit Organizations exempt from sales tax? • Non profit organizations who have received an exempt card from the City are exempt for purchases for the organization only. Sales tax exempt card should be presented at time of purchase. Non-profit organizations must reapply on a yearly basis for exemption.