Sacramento Adopts Crash Tax

The city council in Sacramento, California has approved a city ordinance implementing a “crash tax” on out-of-town motorists. Called a “fire recovery charge,” the ordinance charges a fee to non-local drivers who are involved in auto accidents. Its purpose is to help fund the fire department’s emergency response services.

While the fee would be imposed on any non-resident motorist who is found to be at fault in a traffic accident, business owners who live outside the city but own property within the city would be exempt.

The “tax” will be billed through drivers’ insurance companies.

Sam Sorich, president of the Association of California Insurance Companies spoke on behalf of his organization, which is opposed to the tax. He said, “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.”

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