COUNCIL WASAGA TO IMPOSE SURCHARGE TO USE CREDIT CARD TO PAY TAXES

Earning points on your credit cards may not look so lucrative now, as Wasaga Beach will impose a surcharge on those who pay their tax bill — and other high-dollar transactions with the town — by plastic.

The town has been paying the associated service charges by credit card companies, usually calculated at more than two per cent of a transaction, through tax revenue.

About 1,800 taxpayers, out of approximately 12,000, use their credit card to pay property taxes, according to director of finance Joceyln Lee.

From the more than 86,000 credit card transactions in 2022 — the majority through parking lot meters — the town paid $203,000 in credit card service charges.

In 2022, the rules were changed to allow merchants in Canada to apply charges on credit card transactions. That would allow the town to apply the transaction cost back onto the card holder.

Coun. Sasha Dileo argued against imposing a fee.

"We, as councillors, do not know our residents' personal circumstances, or reasons for the use of credit, to pay their property taxes," she said. "Many may speculate that it is merely to gather points, (but) adding the increased cost of food, gas, and other items due to inflation, there are many who must unfortunately use credit in order to remain current with their property's expenses."

She asked that the idea be deferred for a year.

Mayor Brian Smith said it didn't seem fair that the 85 per cent of taxpayers who pay by cash or by cheque "are paying for me to have the benefit to use my credit card to get points."

He added that there was a deeper issue, that if people couldn't afford to pay their taxes with readilyavailable funds, "there's a good chance they can't afford to pay their credit card debt either."