Due to tough financial times, lawmakers in Sacramento, California are currently considering whether to impose a “car crash tax.” If approved, this tax would levee a fee on non-residents involved in auto accidents within city limits to recover the costs of services by rescue units such as the Sacramento City Fire Department.
Sacramento Deputy Fire Chief Lloyd Ogan estimates the city may recover as much as one million dollars each year if they start billing the non-resident driver’s insurance company for the cost of the recovery fee.
Several fire departments throughout the state of California have already implemented a similar recovery fee. Lawmakers claim that the program is not intended to be a major revenue maker; it is simply a way to relieve the intense financial burden faced by local government officials who are struggling to come up with enough revenue to fund important programs.
However, the proposed “car crash tax” has been sharply criticized by several people, including the president of the Association of California Insurance Companies, who claims the fee is bad for all drivers. He argues that in the long run, the implementation of these fees across the state will ultimately raise insurance rates for all drivers, placing an additional financial burden on city residents and non-residents alike.
If you have an auto accident claim in the Southern California area, please contact the Southern California auto accident lawyers at Jacoby & Meyers today to schedule your free initial consultation.
