Insurers Commend Oklahoma Law Banning “Accident Tax”

Oklahoma Gov. Brad Henry has signed into law HB 2013, which adds Section 10-118 of Title 47 to the Oklahoma Statutes to prohibit the levying of fees for the response or investigation of a motor vehicle accident by law enforcement. The bill, sponsored by Rep. John Wright, R-Tulsa, becomes effective immediately.

According to the Property Casualty Insurers Association, the law is an important consumer protection bill that bans the “accident tax,” stopping local governments from billing motorists for emergency response services at the scene of an automobile accident.

“Local governments will no longer be able to levy accident taxes on motorists who receive essential emergency response services performed by law enforcement officials,” said Joe Woods, assistant vice president and regional manager for PCI. “Public safety is a basic role of government and motorists should not have to pay twice for emergency response services.”

Consumers and state legislatures across the country are being confronted by the debate over billing for accident response services, PCI said. Some third-party collection services are attempting to capitalize on the pressures that many local governments face to balance their budgets without increasing taxes. Local officials are promised large windfalls if they enact a service fee when their police departments are called upon to respond to an automobile accident. However, motorists are outraged as the services provided by the local police are already paid for through property and other local taxes, the association said.

Woods noted, “Similar laws banning the accident tax have been enacted in Pennsylvania, Missouri, Indiana, Georgia, Tennessee, and Arkansas. The Florida Legislature passed a bill to ban the practice last month and is waiting for the governor’s signature, while efforts to end the crash tax continue this year in California.”

For more information, visit www.AccidentTax.com.

Source: PCI

Topics Carriers Oklahoma