Does Your City have a Crash Tax?
Calcrashtax.com is a Web site opposed to the practice of municipalities and fire districts charging accident response fees when fire department personnel respond to a traffic accident. The role of the police and fire department should be to serve and protect not serve and collect. An additional fee for emergency services creates a hidden tax - we call it the "Accident Tax" or "Crash Tax."  Over 60 cities or fire districts in California have approved a crash tax ordinance.  Each ordinance is different, some bill the out-of-town driver, and some bill the "at-fault" driver.  In every respect, it is simply unfair to tax accident victims. It's true that in some cases, a victim's auto insurer will pay the tax. But not all auto insurance policies cover the tax. In those cases, the driver is on the hook for the tax, which can range from $200 to thousands of dollars.  If the trend continues, the tax will begin to affect the cost of insurance, ultimately driving up premiums.

California Bill Fails Passage
A bill to ban municipalities from charging "crash taxes" was struck down by the Senate Public Safety Committee on May 3, 2011.  SB 49, authored by Senator Tony Strickland, was defeated during a hearing on May 3, 2011 after facing strong opposition from the League of California Cities and a fire fighters union. 

Kansas Becomes 13th State to Enact Crash Tax Ban
With Kansas Gov. Sam Brownback signing HB 2119 on May 13th, three states in 2011 have taken positive steps to protect motorists by banning or placing restrictions on local governments charging accident response fees.  Now there are a total of 13 states (Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Kansas, Louisiana, Missouri, Oklahoma, Pennsylvania, Tennessee and Utah) that have passed laws or resolutions prohibiting or restricting municipalities from charging accident response fees.

Sacramento Ends the Crash Tax Before It Begins
Sacramento's controversial "crash tax" was killed by the City Council, which voted 6-2 to repeal it on Tuesday March 29, according to the Sacramento Press. Nicole Mahrt, spokeswoman for the Association of California Insurance Companies, applauded the council's decision to repeal the ordinance.   "I think it was a good move," she said. "All the backlash from the creation of that crash tax made Sacramento look really unwelcoming to all the commuters who come into town." She added that the ordinance served as a "double tax" and that the fees charged by these types of ordinances are typically not covered by insurers.

Vista California City Rejects the Crash Tax
The city of Vista has joined a growing number of jurisdictions rejecting a "crash tax," according to the San Diego Union-Tribune.  Vista was slated to begin charging fees in July, but reevaluated the decision after considering the negative experience Oceanside had with their program. Vista Councilman Dave Cowles said, "It really came down to the revenue not being worth the trouble."

Oceanside City Council Repeals Crash Tax
The Oceanside City Council voted 3 to 2 to repeal their crash tax on March 16, 2011. City Councilman Gary Felien, who called for the repeal, said it wasn't bringing in the amount they expected.  It was projected to raise $266,000 annually and, since it took effect last April, it has raised $16,000.

Roseville Repeals Crash Tax
On February 16, 2011, the City Council of Roseville reversed direction and unanimously voted to repeal their crash tax 18 months after it was implemented.  City council members cited damage to tourism and the city's reputation as reasons to do away with the program. 

People Are Talking:

"We don't want policies that scare tourists away,"
Oceanside City Councilman Gary Felien
North County Times

"Many thousands drive into town each day to work. Close to 500,000 live in the city (thankfully, I'm one). But nearly 600,000 more live elsewhere in the county, and they're all potential victims of the crash tax, as well as people in bordering counties."
George Skelton, Los Angeles Times Columnist

"I don't think this is the right policy for us," said Councilman Jay Schenirer
Sacramento Bee

"Crash taxes are in fact popping up here and there in San Diego County.  It is not a welcome situation and it's certainly not good for residents and businesses, struggling in a trying economy.  The burden of fixing budget problems belongs to our elected officials, not the taxpayer."
Isabelle Espino, President, Chula Vista Civic Association
San Diego Union Tribune

"We're talking about a program that hasn't worked, that isn't successful and has hurt us...I think for PR alone, we should drop this program and tell people we welcome them to this city."
Oceanside City Councilmember Jerry Kern
North County Times

"Double taxation," asserts state Sen. Tony Strickland (R-Moorpark)
Los Angeles Times

Sign Up For More Information
The financial plight of local governments is understandable. But with the economy staggering and unemployment skyrocketing, taxing motorists -- and worst yet, accident victims -- is not the answer to increasing revenues.

If you are interested in this subject, please sign up and we will email you periodic updates. We'll also let you know which agencies are considering the tax in the event you want to let your opinions be known.

So there is full transparency, you should know that we represent insurance companies and our primary concern in this matter is for you, our policyholders. We believe you should be fully informed on this subject because it directly affects you and what costs you may incur.