The borough will allow people to pay sales and property taxes online by credit card, though they will be charged a credit card processing fee of 2.75%.
The assembly approved the credit card option and fee on a unanimous vote at its June 11 meeting.
Utility customers already are allowed to pay their bills with a credit card, with no fee.
The new option for tax payments will take effect July 1.
Property tax bills will go out by July 1 and payments are due by Oct. 15. Businesses generally pay sales taxes quarterly, with the next round of returns due to City Hall by July 31.
Brough Manager Mason Villarma told the assembly it is about time the borough gives people the option to pay their taxes with credit card, and hopes that online payments will reduce late payments. He thinks the option will be especially appealing to people who like to amass miles by charging to their Alaska Airlines credit cards.
The borough will use a payment processing software called “PayIt” which charges a 2.75% processing fee.
People will also be able to pay taxes with an online check, with a processing fee of a flat $2.50 regardless of the amount.
Or businesses and property owners can come to City Hall and pay their taxes in person by cash or check, with no fee.
Currently, roughly 60% of residents pay their utilities via credit card, but the borough does not charge a processing fee. Villarma estimated that the processing fees for online utility payments cost the borough roughly $100,000 per year.
The assembly action on tax payments does not change the no-fee credit card payment system for utility bills but it does add the $2.50 charge for paying utility bills online by check.
The borough estimates sales tax and property tax revenues for the fiscal year that starts July 1 at a combined $5.7 million.
The assembly held a public hearing June 11 on the payment option for sales tax and property tax bills; no one testified for or against the change.
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