Sacramento May Impose Crash Tax on Visiting Motorists
Published on July 19, 2010 at 4:57 pm
Do your travel plans this summer involve driving in California? If so, be sure to pay particular attention while in the Sacramento region. According to the Property Casualty Insurers Association of America, Sacramento is the latest local government in California to consider imposing a “crash tax” on visiting motorists who are involved in road accidents. The tax is supposedly justified by the costs of sending emergency responders to accident scenes.
In some situations, insurers are paying for the tax on behalf of motorists, but this is not always the case. As a result, insurance premiums could increase for many motorists if such tax schemes become more popular. Of course, auto insurance is a competitive market, so insurers may or may not be able to increase premiums without losing market share. It may be more likely for insurers to add clauses to policies to exclude payment of such taxes.
With local and state governments facing large budget deficits, the prospect of taxing visitors who cannot vote in local elections is appealing. However, the instinct to tax visitors is nothing new. Travelers are already familiar with rental car taxes, hotel occupancy taxes, and airport fees that mostly impact tourists and business travelers but not residents within the taxing authority.
It brings to mind the old saying: “Don’t tax you. Don’t tax me. Tax the man behind the tree.”
Related posts:
- Credit Rating “Vigilantes” May Impose Fiscal Discipline Those who followed politics in the early 1990s will recall...
- Progressive Offers Discount Based on Driver Monitoring Progressive has introduced a new discount program designed to offer...
- Earthquake Forecasting: Beyond a Crystal Ball? According to P&C National Underwriter, the next big California earthquake...
- Climate Change Impacts Insurers The National Association of Insurance Commissioners voted to require insurance...
- SIFMA Municipal Bond Summit: Lessons and Outlook for Recovery The Securities Industry and Financial Markets Association (SIFMA) held a...
Short URL: http://www.rationalwalk.com/?p=8245
Contact the Author
When spending goes out of control… The government can find ways to tax ANYTHING