Sacramento Approves ‘Crash Tax’

By | January 27, 2011

The Sacramento City Council has adopted a city ordinance approving a “crash tax” on out of town automobile drivers. The “fire recovery charge” will impose a fee on out-of-town drivers who get into auto accidents in order to fund the fire department’s response services. The fee would be imposed on non-resident drivers if insurers find them at fault in the accident. But business owners who live outside the city but have property inside the city would be exempt from the tax.

The fee will be billed through drivers’ insurance companies.

The Association of California Insurance Companies opposed the tax. “Given the difficult economy, it is understandable why the City of Sacramento is looking for new revenue sources. However, putting this burden on out-of-town drivers is unfair,” said Sam Sorich, ACIC president.

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