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6-3 vote

Hatters have the option to pay property taxes via credit card

Jun 1, 2020 | 9:58 PM

MEDICINE HAT, AB – Medicine Hat residents will have another option to pay their property taxes this year.

In a 6-3 vote, council passed a bylaw which would allow taxpayers to pay property taxes via a credit card option.

The city says it’s an additional matter of convenience for people in a time where cash might be tight.

The city will also foot and wave the 1.8 percent transaction fee.

However, there was a discussion around the council table on Monday night.

Councillor Turner was one of three councillors who were not in support of the bylaw. He believes it’s an unnecessary expense the city would incur.

“And we don’t really know how much money we’re voting on here. For example, if we collect $10-million of taxes using credit cards it’s going to cost $180-thousand,” Turner said.

Adding, in this day and age the city is trying to save every nickel, “My feeling is the majority of people who are going to use the credit card are going to be doing it to get their air miles or cashback and the rest of the taxpayers of Medicine Hat are going to foot the bill.”

The city says the bylaw is for the 2020 year and not set in stone.

And it’s intended to be an additional benefit for ratepayers.

Mayor Ted Clugston says this is an incentive also for people who have the money and credit cards to pay in advance.

“Because of this year’s unique situation, we’re not only allowing the deferral for three months but then we’re allowing a payment plan over the next 12-24 (months) to pay it back. This will hopefully be an incentive for those that can pay to pay early because you have to pay by August 21 which is before the deadline. And, or, those that are in a situation that they’re struggling and credit card does provide them an option they maybe wouldn’t have had otherwise or freed up cash flow.”

“We’re investing our money. We’re not like other municipalities who are perhaps in some cash flow insolvency problems that absolutely need this cash, but we will make good use of it should we get it earlier than perhaps three months, year, or two years,” Clugston added.

Council also passed the 2020 property tax bylaw which includes the property tax credit in the city’s COVID support announced in early May.

Clugston reiterates that taxes are going down to 2019 levels with the city’s COVID credit, which then go down about $70 dollars from last year.

“However, with the education property tax decrease and the Cypress County on the residential and non-residential, there is even less property tax. I think it’s 3 percent on residential and .5 percent on non-residential less than the 2019 total payables.”

The city already has a credit card merchant agreement as the city already takes payments for the Family Leisure Centre and Esplanade.