Electronic Payments
Municipalities look for ways to improve services to better assist their constituents. Utilizing the Internet to make payments for fines, penalties, rents, rates, taxes, fees, assessments and other financial obligations is convenient for many people. It’s become a common means for completing financial transactions, and municipalities are joining in. Many municipalities have established policies to permit electronic payment of taxes, fines and fees via the Internet. The municipality’s website can be used to make payments by credit card or electronic funds transfer. A confirmation is sent to the taxpayer following completion of the on-line transaction. Credit card payments can also be accepted, whether or not payment is made online. A service fee is charged by the municipality for payment by credit card. If your municipality is looking for ways to increase electronic services, consult General Code for sample legislation.
Sample Ordinances:
Town of Pleasant Valley, NY – Ch. 17A
City of Cohoes, NY – Ch. 255, Art. XIII
Township of Jefferson, NJ – § 235-14
Township of Lopatcong, NJ – Ch. 115, Art. VII
Town of Phillipsburg, NJ – Ch. 290, Art. VIII
Township of Lower Providence, PA – Ch. 48, Art. II
Town of Pleasant Valley, NY
Chapter 17A, PAYMENT OF FINES AND FEES
ARTICLE I
Credit Card Payments
[Adopted 1-14-2009 by L.L. No. 1-2009]
§ 17A-1. Findings; legislative authority.
A. Pursuant to § 5 of the General Municipal Lave, the Town Board of the Town of Pleasant Valley hereby determines that it is in the public interest to permit the acceptance by certain officers of the Town of Pleasant Valley of credit cards as a means of payment of fines, fees and other charges, as set forth in § 5 of the General Municipal Law.
B. Pursuant to § 5-b of the General Municipal Law, the Town Board of the Town of Pleasant Valley hereby determines that it is in the public interest to provide for the acceptance via the Town's Internet website as a means of payment of fines, fees and other charges, as set forth in § 5-b of the General Municipal Law.
§ 17A-2. Agreements with financing agencies and card issuers authorized; credit card payments accepted.
The Town Board of the Town of Pleasant Valley hereby authorizes agreements with one or more financing agencies or card issuers to provide for acceptance by the Town Clerk, the Receiver of Taxes, the Zoning Administrator and the Recreation Director, and their designees, as a means of payment for fines, penalties, rents, rates, taxes, fees, charges, revenue, financial obligations and other amounts, including penalties, special assessments or interest, owed to the Town of Pleasant Valley via a municipal Internet website.
§ 17A-3. Conditions of payment.
The agreements referred to in this article shall govern the terms and conditions upon which a credit card proffered as a means of payment of fines, civil penalties, rents, rates, taxes, fees, charges, revenue, financial obligations and other amounts, including penalties, special assessments or interest, shall be accepted or declined and the manner in and conditions upon which the financing agency or card issuer shall pay to the "Town of Pleasant Valley the amounts of the fines, civil penalties, rents, rates, taxes, fees, charges, revenue, financial obligations and other amounts, including penalties, special assessments or interest, paid by means of a credit card, pursuant to such agreement.
§ 17A-4. Service fee.
The agreements referred to in this article shall provide that as a condition for accepting payment by credit card, such person offering payment by credit card or charge card pay a service fee to the Town of Pleasant Valley not to exceed the costs incurred by the Town of Pleasant Valley in connection with the credit or charge card payment transaction, including any fee owed by the Town of Pleasant Valley to the financing agency or card issuer arising from that transaction.
§ 17A-5. Obligation satisfied upon receipt of payment from financing agency or card issuer.
The underlying debt, lien, obligation, bill, account or other amount owed to the Town of Pleasant Valley for which payment by credit card is accepted by the Town of Pleasant Valley shall not be expunged, canceled, released, discharged or satisfied, and any receipt or any other evidence of payment shall be deemed conditional, until Pleasant Valley has received a final and unconditional payment of the full amount due from the financing agency or card issuer for such credit card transaction.
§ 17A-6. Payment of taxes via Internet.
A. In the event of the payment of taxes via the Internet, the Town of Pleasant Valley shall provide a confirmation page to the taxpayer following the completion of the Internet transaction. Such confirmation page shall include at least the following:
(1) The date the Internet transaction was completed and sent by the taxpayer; and
(2) A notice to the taxpayer to print out and retain the confirmation page as his or her receipt.
B. Payment received via the Internet shall be considered received by the appropriate officer and paid by the taxpayer at the time the Internet transaction is completed and sent by the taxpayer.
C. The underlying debt, lien, obligation, bill or other amount owed to the local government for which payment by the Internet is accepted by the local government shall not be expunged, canceled, released, discharged or satisfied, and any receipt or other evidence of payment shall be deemed conditional, until the government has received total and unconditional payment for the full amount due.
City of Cohoes, NY
ARTICLE XIII
Payment of Taxes
[Adopted 3-10-2006 by L.L. No. 3-2006]
§ 255-39. Form of payment accepted. [Amended 1-13-2009 by L.L. No. 4-2009]
Payment of taxes may be made by cash, check, certified funds, money order, electronic funds transfer (EFT) or credit card. Payment by EFT shall be a taxpayer initiated payment and automatic debit-type of transaction.
§ 255-40. Insufficient funds.
There shall be a service charge of $15 for any payment that is declined for insufficient funds. This shall include returned checks or declined EFT. In addition, the City may require any future payments by any person or entity subject to said charge to be by cash or certified funds. The underlying debt, lien, obligation or amount owed to the City of Cohoes shall not be canceled or satisfied until the City has received final and unconditional payment of the full amount due, and any receipt or evidence of payment shall be considered conditional until said final payment.
§ 255-41. Means of payment.
Payment of taxes may be made in person or by mail to the Treasurer of the City of Cohoes, or in person at a bank or depository designated by the City, or via the Internet.
§ 255-42. Payment via Internet.
A. Any method used to receive Internet payments must:
(1) Authenticate the identity of the sender or be accompanied by sufficient language to identify the property and tax levy; and
(2) Ensure the security of the information transmitted.
B. A confirmation page shall be provided to the taxpayer following completion of the Internet transaction. Such confirmation page shall include:
(1) The date that the Internet transaction was completed and sent by the taxpayer; and
(2) A notice to the taxpayer to print out and retain the page as a receipt.
C. Payments via the Internet shall be considered received by the Treasurer and paid by the taxpayer, subject to receipt of funds in full, at the time the Internet transaction is completed and sent by the taxpayer.
Township of Jefferson, NJ
§ 235-14. Credit card fees. [Added 12-5-2007 by Ord. No. 24-07]
There is hereby established a fee for the use of credit cards for the payment of taxes, water, sewer payments or other fees and charged by the Township of Jefferson, which shall equal a percentage fee on the amount of payment charged as set by a financial institution chosen by the Township to process said credit card payments. Said percentage fee shall not exceed, in any event, 3% of the total amount of the payment.
Township of Lopatcong, NJ
ARTICLE VII
Payment by Credit Card
[Adopted 7-2-2008 by Ord. No. 2008-10]
§ 115-15 Fees for payment by credit card.
In addition to the percentage fee listed below, each transaction will be charged a charge of $0.15. The percentage fee is based upon the type of card used and the amount charged.
A. MasterCard/Visa/debit qualified (swiped): 1.80%.
B. Visa/MasterCard/debit mid-qualified (i.e., non-swiped): 2.30%.
C. Visa/MasterCard/debt non-qualified (i.e., corporate): 3.00%.
Town of Phillipsburg, NJ
ARTICLE VIII
Payment by Credit Card
[Adopted 9-16-2008 by Ord. No. O:2008-24]
§ 290-8. Authorization to accept credit card payments.
The Tax Collector and Sewer Collector are hereby authorized to accept credit card payments for the payment of tax and sewer bills.
§ 290-9. Applicability to other provisions.
The use of credit cards for payment is subject to the provisions of N.J.A.C. 5:30-9.1 et seq.
§ 290-10. Transaction fees.
The Tax Collector and Sewer Collector are hereby authorized to charge transaction fees to cover the costs charged by the bank.
§ 290-11. Fees for payment by credit card.
In addition to the percentage fee listed below, each transaction will be charged a charge of $0.15. The percentage fee is based upon the type of card used and the amount charged.
| Type of Card | Fee |
| MasterCard/Visa/debit qualified (swiped) | 1.80% |
| MasterCard/Visa/debit midqualified (i.e., non-swiped) | 2.30% |
| Visa/MasterCard/debit nonqualified (i.e., corporate) | 3.00% |
Township of Lower Providence, PA
ARTICLE II
Fees for Payments Made by Credit Cards and Electronic Checks
[Adopted 3-1-2007 by Ord. No. 559]
§ 48-3 Fee authorized.
The Tax Collector may charge a fee not in excess of 3% for credit card fees actually incurred by Lower Providence Township Tax Collector for payments paid by taxpayers by credit card and the Tax Collector may charge a fee not in excess of 1.5% for fees actually incurred by the Lower Providence Township Tax Collector for payments received by taxpayers via electronic check.
