| August 5, 2010

Pennsylvania residents to take on debt in order to pay taxes

Though the number of people currently doing it is relatively small, more in Pennsylvania are taking on credit card debt to pay their local taxes, even though they are charged a fee to do it.

According to a report in the Pittsburgh Post-Gazette, a growing number of Pennsylvania residents are opting for the convenience of using their credit card to make tax payments for a number of reasons. While not every town or county in the state will allow residents to pay via this method, those that will charge a fee to do so. This is because, as with any other credit card transaction, there is a fee – usually about 3 percent – and elected officials won’t allow those paying with cash or check to be foot the bill for others’ credit card transactions.

One tax collector told the paper that people typically use credit cards on their tax bills for three reasons: a lack of cash, the ability to compile credit card rewards or miles, and the convenience of paying online.

The Internal Revenue Service also accepts credit card transactions, but like Pennsylvania, it charges a small percentage of the total bill as a fee.

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