Calif. Mayor Thinks 'Crash Tax' Is Good

Feb. 24, 2010
SACRAMENTO, Calif. -- Sacramento Mayor Kevin Johnson said Tuesday that a proposed tax for responding to auto accidents and house fires is a good idea. Johnson also said that he doesn't consider the fee a tax. The Association of California Insurance Companies said in a news release that it opposes local governments imposing the tax.

SACRAMENTO, Calif. --

Sacramento Mayor Kevin Johnson said Tuesday that a proposed tax for responding to auto accidents and house fires is a good idea.

Johnson also said that he doesn't consider the fee a tax.

The Association of California Insurance Companies said in a news release that it opposes local governments imposing the tax.

"It's unfortunate that local governments, like many of us, are adversely affected by the deep recession. But it is unfair and unwise for local governments to victimize auto accident and house fire victims twice," ACIC President Sam Sorich said in a statement.

If approved, Sacramento would begin imposing the fees late this summer.

The city has estimated it would generate $1 million in revenue annually.

"Ultimately, I think it makes good business sense as well," Johnson said.

Roseville and Stockton have already started similar programs.

Meanwhile, California is considering imposing a surcharge on homeowners to pay for wildfire protection and other disaster response.

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