Borough will charge credit card fee on tax payments

In a May 31 budget work session to consider borough finances for the fiscal year that starts July 1, Finance Director Mason Villarma advised the assembly that the borough is working toward accepting credit card payments for property and sales taxes but will charge a fee to accept the cards.

“We are still finalizing our process and we may establish fees at a certain dollar threshold,” Villarma said last Friday. “We will be sure to give folks ample notice,” he added.

“This will not apply to utility or moorage credit card payments,” Villarma wrote in his presentation to the assembly.

The borough currently accepts credit cards on such payments, including Parks and Recreation fees, and does not charge a fee. It has for years absorbed the credit card fees charged by its bank and card processor, costing about $75,000 a year on average, Villarma said last Friday.

Petersburg charges a credit card fee on sales tax and property tax payments, but not on utility or harbor bills, the same as Wrangell is planning. Juneau contracts out its credit card payment services on taxes and utility bills, and the contractor collects a fee from bill payers.

 

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