(a) If any part of the deficiency in payment of the sales or use tax is due to negligent or intentional disregard of the requirements of this article or of any rules or regulations promulgated pursuant thereto, but without intent to defraud, there shall be added to the tax deficiency in addition to the interest provided by section 130-68, a penalty equal to ten percent of the total amount of such deficiency which deficiency, interest, and penalty shall become due and payable ten days after written notice and demand is given to the taxpayer by the finance director.

(b) If any part of the tax deficiency is due to fraud with the intent to evade the sales or use tax, there shall be added to the tax deficiency, in addition to the interest provided by section 130-68, a penalty equal to 100 percent of the total amount of such deficiency, which deficiency, interest, and penalty shall become due and payable ten days after written notice and demand is given to the taxpayer by the finance director. In such case, an additional three percent per month on the total amount shall be added from the date the return was due until paid in full. (Code 1979, § 36-27)