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San Marcos council OKs payment‑processing fees for hotel tax and short‑term rental permits
Summary
The council approved an ordinance to establish payment‑processing fees — 3% for credit card transactions and $2 flat for web check — shifting about $40,000 in annual costs from the city to payors through vendor processing.
San Marcos City Council on July 7 approved on first reading an ordinance creating payment processing fees for hotel‑tax and short‑term rental permit payments collected through the city's web portal.
Ismael Garcia, assistant finance director, told the council the city has been absorbing third‑party processing costs for hotel tax payments and short‑term rental permit fees, which staff estimates has cost the city roughly $40,000 annually. Garcia said the city contracted with a vendor (Azovar) to handle reporting and collections, and the recommended fee structure is a 3% credit‑card processing charge and a $2 flat fee for payments made by check through the portal.
There were no public speakers during the hearing on this item. Council approved the ordinance on the first of two readings by a unanimous 7–0 roll call. Staff said the change would be implemented through the vendor portal and that the fee amounts were intended to roughly recover the administrative cost the city had been absorbing.
