Authorizes payment of personal income tax by credit card

BILL NUMBER:S2072

Title of bill

An act to amend the tax law, in relation to payment of personal income tax by credit card

Summary

This bill amends subdivision (a) of Section 692 of the Tax Law, as added by Chapter 1011 of the Laws of 1962, to require the Tax Department to establish regulations and procedures to authorize the payment of personal income taxes by means of credit cards. The Tax Department will have the authority to prescribe the manner and conditions appropriate to such mode of payment.

Justification

In a time when the stability of our economy is sitting somewhat precariously, many people find themselves facing increased financial burdens and the inability to meet all of their financial obligations. This bill would assist in alleviating one of these burdens by allowing taxpayers to pay their income tax debts with credit cards. In allowing taxpayers to use credit cards, two benefits are derived. First, as the April 15 deadline for payment of taxes approaches, a person who does not have the cash--on-hand to meet his/her obligations can save the penalties that would otherwise be incurred with a late payment of taxes. This penalty can amount to as much as an additional 25% charge. This legislation would allow an immediate savings to be realized by the taxpayer. In addition, New York State would benefit by receiving tax payments on time. This system would serve to reduce the necessity of borrowing money each spring at high rates of interest in order to bridge the gap created by late tax payments.

Fiscal implication

To be determined.

Effective date

This act shall take effect immediately.