Who should pick up the credit card charges for online payment of parking tickets and other city assessments?
Right now in New York City, it’s the public. A $2 “service fee” is tacked on whenever a parking ticket is paid online — ostensibly to pay the processing charges. (There is no fee when a parking ticket is paid by mail.)
But some members of the City Council think it’s time for the city government to shoulder the burden of the processing fees, since it saves money by reducing the staffing needed to process the checks. Two members proposed legislation on Wednesday that would prevent any city agency from charging fees when accepting a credit card for the payment for fines, civil penalties, taxes or fees. This would also affect health department penalties and water fees.
“You are saving money from their paying online, but you are charging extra,” said Councilman Simcha Felder, from Brooklyn, who is pushing the legislation. “It’s important for the agencies to send the message that we are not nickel-and-diming you.”
He added, “We have to make a distinction between an entity that is created to make profit and the city.”
The city issues about 10 million parking tickets a year, and they are a major revenue source. This fiscal year the tickets are expected to bring in $593 million, and next year the mayor’s budget expects $686 million. About two-thirds of parking summonses are paid [pdf], and of those that are paid, about a quarter are paid online. [pdf] That brings in about $4 million in fees a year.
The mayor’s office said it would not comment on legislation before a hearing has been held.
(Source: NY Times)
Join the official YWN WhatsApp status
One Response
Let’s not tell Bloomberg how to get rich. He knows how – he’s there, we’re not! Let’s learn from him how to do it. Perhaps Mosdos and Tzedokos should also charge as well as gasoline stations and grocery stores! (tongue in cheek)