Date: Fri 02-Jul-1999

Publication: Bee

Author: STEVEB

Quick Words:

tax-credit-card-payments

Full Text:

Paying Taxes On Credit Isn't In The Cards This Year

BY STEVE BIGHAM

In this day and age, credit cards are accepted just about everywhere. You can

use them in the mall, in the grocery store, at the gas station... even to buy

a new car. The Internet has gone hog wild with credit card sales. But in

Newtown, you still can not pay your local property taxes with plastic.

There are a handful of towns that do accept credit cards, but those towns are

responsible for paying the surcharge imposed by each credit card company.

Newtown finance director Ben Spragg hopes federal legislation will eventually

be changed to allow towns to pass the surcharge on to the individual taxpayer

who chooses to use a credit card to pay. This will require an amendment to the

Truth in Lending Act by the US Congress. The proposed legislation is called

the "Credit Card Reform Act."

Until a change is made, however, most town governments, including Newtown,

will continue to refuse the use of credit cards.

"I'm all for it," Mr Spragg said. "Accepting credit cards is beneficial to the

town. It minimizes the cost of collecting, expedites deposits and is more

reliable than a check. But the thing never passes in Congress."

Of course, there is no law against allowing residents to use credit cards, but

towns have to pay the surcharge. That's why few accept them. Newtown could

easily create another line item in the tax collector's budget to cover this

charge, but Mr Spragg believes it is unfair to force all taxpayers to pay

credit card charges.

"Unlike a business, we can not adjust our charges. Whatever your tax bill is,

is based on precise computations," he said.

Sears, for example, can easily just tag the cost on to the original price of

the product. Legally, a municipality can not.

Eventually, Mr Spragg hopes all town offices will be able to accept credit

cards.

Incidentally, the US Congress recently voted to allow the Internal Revenue

Service (IRS) to accept credit cards.