An ordinance passed by the mayor and other Sacramento City Council members voted 5-4 last week for new crash tax fees.
The Sacramento City Council meeting was bad news for local businesses and is unfair to consumers that shop, work or visit the City of Sacramento, according to the Association of California Insurance Companies (ACIC). This ordinance, which is up for debate as agenda item No. 11 this evening at the City Council meeting, proposes to charge a fee to 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, regardless of fault.
“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. “We are opposing this ordinance because it will hurt our customers. This ordinance anticipates contracting with a third-party that will charge auto insurance companies for the recovery fees, but the fact is the typical auto insurance policy was never intended to cover these fees. A typical policy pays for injuries and property damage. It does not pay for a fire department’s response to an accident.”
Sorich said he intends to testify against the proposed ordinance. The Sacramento City Council has discussed this proposal several times, most recently back in November. A vote was put over so there was more time for consideration.
“It is questionable that this ordinance will generate the projected revenue,” Sorich added. “Moreover, if insurance policies are required to cover the response fees, consumers will pay the price because insurance costs will increase … If this ordinance is approved, the at-fault driver who is a Sacramento resident gets no extra bill while the innocent non-resident driver gets a bill for hundreds of dollars. That is simply not fair. The ordinance sends a terrible message.
Supervisor Jim Provenza, of Davis, called the fees an inappropriate scheme to raise revenue and suggested the board back a proposed state measure that would outlaw future crash fees.
“It’s not about paying for fire services,” Provenza said. “It’s really a revenue-raising device.”
He worried that fire trucks will show up at accidents, even when they aren’t needed, to generate funds.
Supervisor Don Saylor, also of Davis, urged lobbying Sacramento council members to reconsider their action.
Board Chairman Matt Rexroad said “the idea of charging only people from outside jurisdictions and not your own residents is just wrong.”
In the end, the supervisors agreed to send a formal letter to the Sacramento mayor and City Council asking them to rescind the action.