Official Payments Corporation announced the signing of an agreement with the company’s 21st state client, the Commonwealth of Pennsylvania.
The agreement authorizes Official Payments to provide a service enabling Pennsylvania taxpayers to make credit card payments for personal income taxes. Beginning March 1, 2002, such payments may be made via the Internet at www.officialpayments.com or over the telephone by calling 1-800-2PAY-TAX. Last year, the Commonwealth collected approximately $1.9 billion in personal income taxes, and is the country’s seventh largest state in terms of tax collection.
“The credit card payment option is the next logical step in Governor Mark Schweiker’s Friction-Free E-Government program,” said PA Department of Revenue Secretary Larry P. Williams. “Pennsylvania already offers electronic filing through the Internet (pa.direct.file), telephone (TeleFile), and authorized software (e-file) options. Adding the ability to pay by credit card will help us make the tax payment process even more convenient for our taxpayers.”
“With the addition of Pennsylvania, Official Payments now serves seven of the top ten tax collecting bodies in the United States,” said Thomas R. Evans, Chairman & CEO of Official Payments. “This is a wonderful addition for us as we begin collecting balance-due payments for tax year 2001. More and more citizens are discovering the convenience, cash management, and rewards benefits of paying their taxes by credit card.”
For the coming tax season, Official Payments will charge Pennsylvania taxpayers a convenience fee of 2.5% for processing their credit card transactions. For example, a taxpayer who charged a balance due tax of $1,000 would find a total of $1,025 on his or her credit card statement: $1,000 for the tax bill and $25 for the convenience fee. American Express, Discover Card, and MasterCard are the credit cards accepted by the program. Taxpayers using credit cards with bonus rewards programs may, depending on their card’s program, earn rewards, points, and airline frequent flyer miles or cash back for paying their taxes.
About Official Payments Corporation
Founded in 1996, Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to more than 1,000 government entities in all 50 states. The company has agreements to collect and process credit card payments with the IRS, 21 state governments (AL, AR, CA, CT, IL, IN, IA, KS, MD, MN, MS, NJ, NY, OH, OK, PA, RI, VA, WA, WI, and WV), the District of Columbia, and more than 1,000 counties and municipalities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. In 2001, Official Payments collected and processed more than one million transactions totaling $1.2 billion in federal, state and local government payments. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market.Details