We've offered online payment options for taxes for several years. Like Mark said, eating the fee will help. Absent that, to increase adoption, you need to market the online option by taking advantage of the most frequent & direct correspondence that your community sends: bills. Describe the online payment options in an insert and on the face of the bill itself, possibly even the envelope.Secondly, as many electronic bill & payment experts will tell you, consumers need to have the confidence that what they will see online matches as closely as possible what they get in the mail, or they'll lose trust in the online system.Discounting tax payments could create an accounting headache and may not be legal in your state. I would advise against that.An employee competition would be fine, but you may want to do it in conjunction with training to ensure that staff are fully equipped to answer questions that taxpayers will have about the system. Employees should also add the tax website to their email signatures, their out-of-office responses, and voicemail.My last suggestion, although it probably won't be what you had in mind, is that when parking limits are properly enforced near City Hall, the walk-in taxpayer traffic falls. When our city installed new, smarter parking meters, our walk-in traffic really dropped. Basic parking enforcement sends people to the mailbox or online.