Sacramento, CA—
Just hours before Sacramento's City Council was set to vote on a controversial "crash tax" the City Manager pulled it from the agenda. His staff says they've directed to get more specifics on how other cities have implemented the plan, while opponents are hoping it belies doubts about whether the plan is right for Sacramento.The idea has out-of-towners paying out $400 for more if they are at fault in an accident in Sacramento and fire crews responded.
"We need to do some cost recovery for the services we provide," said Cassandra Jennings. She is the City's point person and cheerleader-in-chief for the plan. FOX40 asked her if this puts the City in a position of having to find-out who is responsible in accidents.
"Absolutely not," Jennings said. "The third party vendor as well as the insurance companies will gather that information."
"there are billing companies who have worked back East and put forward these schemes," said Sam Sorich, president of the Association of California insurance Companies. He says the battle to keep the "crash tax" out of Sacramento is especially important because, as the State Capital, we set precedents.
"No doubt, the City is facing tough economic challenges," Sorich said. "But this is the wrong answer, because it really sends a message to people who want to come here."
But those of us who are Sacramento residents wouldn't get charged, right? And even if our friends or family fell on hard times here, we'd see insurance companies pick-up the tab, right? Or would our insurance rates go up?
"I don't think the City of Sacramento's program will make you rates go up. I think the insurance industry will have to decide if they want to write their policies differently," said Jennings.
The City's rough estimate is they'd make about 1 million dollars a year from the "crash tax." Roseville, Stockton and Fresno already have a similar program. Huntington Beach just adopted the approach yesterday. Oakland is also considering it.
