SOMBA K'E/YELLOWKNIFE - Yellowknifers can no longer rack up Air Miles when paying their property taxes, but city officials are saying a move disallowing use of credit cards to pay off taxes will actually save the city $80,000 a year in the long run.

Carl Bird, director of corporate services for the City of Yellowknife, stands in city hall on March 22, holding the pre-authorized payment plan form, which will give residents a chance to pay off their property taxes over a period of time. - Tim Edwards/NNSL photo

The interim tax levy, due on March 31, is the first time credit cards will not be accepted as a form of payment.

"One thing to keep in mind is we provide other convenient methods of payment," said Carl Bird, the director of corporate services for the City of Yellowknife.

Residents can apply for the pre-authorized payment program at the city right up until March 31, which divides the tax payment into four equal parts to be withdrawn automatically every month from the taxpayer's bank account. No interest accumulates on these payments.

The forms for this program are available on the city's website, as well as on hard copy at city hall.

City councillor Lydia Bardak said the move was a smart one.

"What this does is just save us the credit card processing fees. It saves taxpayers' money in the long run," said Bardak.

Bird said credit card processing fees stood out when corporate services looked through the city budget last year.

"The majority of credit card fees were accounted for from people paying their taxes with their credit cards," said Bird. He did not specify the amount that will be saved this year on processing fees. He said it would be lower than the $80,000 a year the city expects to save next year and the years after. He attributed that to the fact the move is just happening now.

Bird and Bardak both said most complaints so far have centred around a loss in Air Miles or other sorts of credit card points. One formal letter was submitted to city council that disapproved of the move.

The author of the letter did not wish to speak to Yellowknifer.