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Enforcement and penalties Both new G.S. 153A-156 and 160A-215.1 provide that enforcement of the tax wilt be governed · by article 9 of Chapter 105. The most important section in this article is G.S. 105-236, which establishes various penalties. The penalty for a bad check is the same as in the Machinery Act, 10 percent, with a minimum of $1 and a maximum of $I,000, G.S. 105-236(1). The penalty for failure to file a return when due is 5 percent of the tax if the delay is not more than one month plus 5 percent for each additional month, not to exceed 25 percent of the tax, or $5, whichever is greater, G.S. 105-236(3). The penalty for failure to pay a tax when due is 10 percent of the tax, with a minimum of $5, G.S. 105-236(4). Thus, under these provisions, ifa taxpaye[, fails to file a timely return and pay the tax with the return, the total penalty would be 15 percent of the tax. The board of county commissioners or the city council may reduce or waive these penalties in a particular case pursuant to G.S. 105-237. The reasons for the.reduction or waiver must be stated in the minutes. An additional penalty that is available in the case of corporations and limited liability companies is suspension of their charters by the Secretary of State. G.S. 105-230 provides that ifa corporation or LLC fails to file a return or pay a tax for 90 days after it is due, the Secretary of Revenue (whose role is taken by the board of county commissioners or city council) shall inform the Secretary of State, and the Secretary of State shall suspend the charter of the tardy corporation or LLC. The penalty provisions of article 9 of Chapter 105 appear to be in addition to the enforcement remedies of levy and attachment and garnishment provided in G.S. 153A~147 and G.S. 160A- 207. G.S. 153A-156(f) and G.S. 160A-215.1(f) do not specify that the article 9 remedies are exclusive, and G.S. 153A-147 and G.S. 160A-207 provide that the remedies granted by those statutes are "[i]n addition to any other remedies provided by law .... " G.S. 105-241.1(i) provides for interest on delinquent taxes in an amount set by the Secretary of Revenue. Under new G.S. 153A-156(f) and G.S.160A-215.1(f), this authority is granted to the city and county governing boards. The amount of annual interest to be applied to this tax should be included in the ordinance levying the tax. The Institute of Government and our office recommend applying the Machinery Act rate of 0.75 percent a month, or 9 percent a year. Attachments: Attached are samples of letters, forms and application that we recommend the taxing units across the State use to impler~_ ent the tax on gross receipts. We would like all taxing units to use forms that look basically the same. The shape, size, and color of the forms are not as important as is the need that the fomls ail request the same information. Most of the companies that will be submitting 'these forms and paying this tax have locations in multiple counties. They will be changing their computer software and forms so they can comply with the law. The use of one form statewide will help the businesses as well as the taxing units implement this new tax. If you have any questions concerning this issue, please contact David Baker or Kirk Boone at 919-733-7711. -4-