Pay property tax with a credit card?

Old Oct 12, 15, 12:37 pm
  #1  
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Pay property tax with a credit card?

Does anyone find value in doing this? My annual property tax is about $14k. I can pay by credit card for a 2.3% processing fee ($322). Since I have to pay this (usually by check, so no points/miles), I thought about using it towards the Chase British Airways card and its $20k min spend for 100k avios.

If I pay the $14k property tax ($322), and MS the other $6k (say at $5 fee per $500 vgc), I could get the 120k avios (100k bonus plus 20k avios spend) for about $0.0032 per point.

Does this seem worthwhile?
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Old Oct 12, 15, 12:48 pm
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I dont think your cost analysis has proper prospective.. you can hit 50k with minimal spend requirement so in reality you are getting 60k extra for about $350 in fees.. i d only do it with follow through to companion pass if it is of value to you...
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Old Oct 12, 15, 12:57 pm
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Originally Posted by azepine00 View Post
I dont think your cost analysis has proper prospective.. you can hit 50k with minimal spend requirement so in reality you are getting 60k extra for about $350 in fees.. i d only do it with follow through to companion pass if it is of value to you...
When you look at it that way, its $382 in fees for 68k avios, or $0.0056 per point. The processing fee % is more than I would usually like to spend, but was just trying to figure out a way to take advantage of the $14k property tax that I have to pay each year.

And the companion ticket wouldn't be of any use for me since we have no plans to travel to Europe.

Last edited by rlee1180; Oct 12, 15 at 1:12 pm
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Old Oct 12, 15, 1:04 pm
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Everything has an opportunity cost, it just depends on how you plan to meet that 10k spending for that British Airways card.

I plan to pay my property tax using my girlfriend's new Barclays Arrival+ card since I needed to spend 4k to meet minimum spending anyway. So my cost is 2.3%-2.1% = 0.02% to meet that 4k spend = $8.

I can also spend 4k via regular spending, but i plan to use the Discover It Miles card to do my regular spending @ 3% back. So if I spend that 4k regular spending using Barclays Arrival+, then i'm losing (3%-2.1%) * 4000 = $36 in terms of opportunity cost. Of course I can also pay property tax using Discover It Miles card, but i'd still have to find other means to meet that 4k minimum spending.
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Old Oct 12, 15, 1:27 pm
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Originally Posted by jazzmailman View Post
Everything has an opportunity cost, it just depends on how you plan to meet that 10k spending for that British Airways card.

I plan to pay my property tax using my girlfriend's new Barclays Arrival+ card since I needed to spend 4k to meet minimum spending anyway. So my cost is 2.3%-2.1% = 0.02% to meet that 4k spend = $8.

I can also spend 4k via regular spending, but i plan to use the Discover It Miles card to do my regular spending @ 3% back. So if I spend that 4k regular spending using Barclays Arrival+, then i'm losing (3%-2.1%) * 4000 = $36 in terms of opportunity cost. Of course I can also pay property tax using Discover It Miles card, but i'd still have to find other means to meet that 4k minimum spending.
Is the 2.1% your cash back from the Barclays Arrival + card?
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Old Oct 12, 15, 2:27 pm
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Originally Posted by rlee1180 View Post
Does anyone find value in doing this? My annual property tax is about $14k. I can pay by credit card for a 2.3% processing fee ($322).
I think you can do better if the opportunity is available. Instead of paying the $322 in processing fee, I would buy Simon GC and turn those around into MOs to pay the property tax. 14 $1,000 MOs @ .70 cents each = $9.80 + cost of SGC of $111 = $121 (- a savings of $201!). The SGC spend will also qualify towards your minimum spend. Good luck.

Last edited by Flyby01; Oct 12, 15 at 2:33 pm
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Old Oct 12, 15, 2:35 pm
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Originally Posted by Flyby01 View Post
I think you can do better if the opportunity is available. Instead of paying the $322 in processing fee, I would buy Simon GC and turn those around into MOs to pay the property tax. 14 $1,000 MOs @ .70 cents each = $9.80 + cost of SGC of $111 = $121 (- a savings of $201!). The SGC spend will also qualify towards your minimum spend. Good luck.
For MO, can you combine multiple MO into single one? At WM, if you want to use VGC to buy MO, what is the limit on number of swipes for same MO?
Can you buy $5K MO with 10 swipes of $500 VGC?
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Old Oct 12, 15, 2:43 pm
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Originally Posted by desikid View Post
For MO, can you combine multiple MO into single one? At WM, if you want to use VGC to buy MO, what is the limit on number of swipes for same MO?
Can you buy $5K MO with 10 swipes of $500 VGC?
This is my concern as well. If my property tax was just a couple grand, then I could easily just MS with VGC and load to Serve or MO's. But $14k (actually two separate payments of $6700 each) is a lot of GCs and I'm not sure if I would be able to load them all to Serve or put together into a MO.
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Old Oct 12, 15, 7:53 pm
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Evolve Money, perhaps
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Old Oct 12, 15, 8:12 pm
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Originally Posted by Alcibiades View Post
Evolve Money, perhaps
Looked it up. Unfortunately the limit for an individual bill pay: "$2,999.00 for a single bill funded by a debit card and/or credit card". "
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Old Oct 12, 15, 8:21 pm
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Originally Posted by rlee1180 View Post
This is my concern as well. If my property tax was just a couple grand, then I could easily just MS with VGC and load to Serve or MO's. But $14k (actually two separate payments of $6700 each) is a lot of GCs and I'm not sure if I would be able to load them all to Serve or put together into a MO.
How much does your city/county charge for debit payments? Why not go in and pay it $500 at a time?
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Old Oct 12, 15, 10:04 pm
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Originally Posted by Chelski View Post
How much does your city/county charge for debit payments? Why not go in and pay it $500 at a time?
Santa Clara county accepts full payments only. So, can't split up payments.
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Old Oct 13, 15, 8:04 am
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Originally Posted by desikid View Post
Santa Clara county accepts full payments only. So, can't split up payments.
In person, you cannot. But they will not reject ACH partial payments.
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Old Oct 13, 15, 8:06 am
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Originally Posted by Alcibiades View Post
Evolve Money, perhaps
Originally Posted by rlee1180 View Post
Looked it up. Unfortunately the limit for an individual bill pay: "$2,999.00 for a single bill funded by a debit card and/or credit card". "
Configure 5 payments then.
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Old Oct 13, 15, 8:15 am
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Originally Posted by rlee1180 View Post
This is my concern as well. If my property tax was just a couple grand, then I could easily just MS with VGC and load to Serve or MO's. But $14k (actually two separate payments of $6700 each) is a lot of GCs and I'm not sure if I would be able to load them all to Serve or put together into a MO.
I've sent in multiple $1000 MOs for a real estate tax payment before without issue.
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