(1) The department shall assess a monthly penalty equal to 10 percent of the required filing fee in ARM 2.4.402 when a local government entity does not submit the filing fee required by 2-7-514, MCA, within 60 days of the due date.

(a) If the revenues and filing fee applicable to the reporting period have not been reported or are not known, the department shall use the filing fee of the most recent reporting period available to calculate the late filing fee penalty.

(2) Rather than imposing the late payment penalty established in (1), the department may issue an order to withhold payment of any state financial assistance to the local government entity.

(3) Upon receipt of the required filing fee, the department shall notify each state agency that any financial assistance withheld pursuant to the department's order has been released to the local government entity.