This report was prepared for The Council of State Governments Financial Services Working Group by Dwight V. Denison, Merl M. Hackbart, Juita-Eleana (Wie) Yusuf, and Jay H. Song of the University of Kentucky's Martin School for Public Policy and Administration.
Rapidly expanding proportions of retail- and business-related payments, traditionally made by cash and check, are now being made electronically through Automated Clearing House (ACH) or using credit or debit cards. Increasingly, the shift to electronic payments is also occurring in the public sector. The principal purpose of this study was to determine current state government acceptance and use of electronic tax and fee payments. Related purposes included an analysis of policies and procedures implemented by the states to more effectively facilitate and manage electronic payment processes.