Saturday, January 01, 2011

California cities start levying "crash" taxes

Link HT: Newsalert
At least 50 cities in the state have adopted so-called crash-tax laws allowing local governments to seek reimbursement from insurance companies for the costs of sending public emergency crews to accident scenes. The fees can amount to hundreds or even thousands of dollars. If insurers don't pay, cities can hire collection agents to seek payment from the motorists involved.

Billing crash victims might seem heartless. But public officials said that budget woes are compelling them to find new ways to raise revenue. Over the last six years, Costa Mesa, Fullerton, Garden Grove, Santa Ana, Hemet and other cities have started charging fees for accident-related public services.