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Using The "Crash Tax" To Raise Money

Emergency responder fees, or "crash taxes" have been around for many years, but as the economy struggles, more and more cities and jurisdictions are turning to the crash tax to pay for police and emergency response services. While people complain that their taxes already pay for these services, city officials who support the tax say that the charges are necessary, adding that in most cases, the tax is only charged on nonresident drivers and the fees are usually paid by the drivers' auto insurance.

This does not mean that you won't be affected. People are always driving into other jurisdictions for work, shopping, vacation and other errands, and if you happen to get into an accident, you may receive a bill. Even if your insurance covers these fees, which many don't, your insurance rates will most likely go up. It is also difficult to track every city that imposes the tax because they are routinely implemented with little public awareness.

These fees have created bad publicity for many cities. Radnor Township in Pennsylvania dropped its practice of billing for police services and refunded nearly $47,000 in fees collected after their program received many complaints and bad publicity. In Florida, Tampa and the town of Davie dropped the tax after the public expressed outrage. Since 2008 Alabama, Arkansas, Florida, Georgia, Indiana, Louisiana, Missouri, Oklahoma, Pennsylvania and Tennessee have outlawed accident response fees.

Among the local governments that have already approved the crash tax are Roseville, Fallbrook, CA and the Fresno County Fire Protection District. Several other local governments are now considering such taxes.