Mar 31, 2009 10:07 pm US/Mountain
Fire Departments Turn To 'Crash Tax' For Budget
Written by Brian Maass
DENVER (CBS4) ―
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According to the insurance industry, about 30 states have pursued accident response fees. But several states and municipalities have said enough is enough and prohibited rescue fees.
CBS
Next time you're in a fender bender, you could end up with more than just a cracked bumper and some chipped paint. If the fire department shows up, they may hit you up for what are called "accident response fees" or "rescue fees." Critics call them a "crash tax."
It's a "hidden, backdoor tax," according to Carole Walker of the Rocky Mountain Insurance Information Association, a trade group representing insurance companies.
"They're another tax; one that voters may be unaware of that people did not approve. It's a way to generate more revenue for that fire and ambulance service," said Walker.
Jud Luyties, a CBS4 employee, learned about accident response fees first-hand on Dec. 12. He was involved in a multi-vehicle accident on northbound Interstate 25 as he was driving home. He was not hurt and his car received minor damage to the rear bumper. He required no medical treatment and was about to drive home when a firefighter handed him an "accident response and rescue billing form." They were charging him $200 for "scene safety, check for injury, check and/or mitigate hazards."
Equally as bothersome to Luyties was the language on the bill that he was asked to sign. It reads, "I agree to pay the rescue bill regardless whether I need, request or refuse medical treatment, and regardless whether I am transported by the fire district to an emergency care facility."
"I was a little shocked," said Luyties. "I pay property taxes and expect the fire department to show up in this situation. To get a bill in this situation was odd. It was extremely odd, like I was being penalized for being there at the accident."
Luyties is not alone. More and more Colorado fire departments are turning to these controversial fees to bolster their bottom lines. They typically will levy the fees on drivers from outside of their jurisdictions and won't charge their own residents. The South Adams County Fire Department began charging accident response fees in January.
"The economy has affected us as well as everyone," wrote Fire Marshall Ron LaPenna.
LaPenna said the fees are seen "as a supplement to the revenue for the district." He said since the inception of the policy, 61 invoices have been issued totaling $13,250.
"The policy is that when any person who is not a resident of the district , which means they do not pay property taxes to the district, is involved in a accident within our district and the department is dispatched to the call, the non-resident will receive a rescue bill," he said. "The district is utilizing our resources to provide a service to non-district people."
In 2008, the Foothills Fire Protection District raised $64,515.86 from accident response fees. They've been charging such fees since 2002. A spokesman for the district explained the fees were needed since 55 percent of calls for help are not for fires, but for highway accidents on I-70.
"Our view is that without the charges, the taxpayers of this district are subsidizing the people who do not pay taxes or make any other significant contribution to the district, but do make significant demand upon and use of the district's resources," wrote Fire District President T.J. Carney. "The demand and use is a significant financial and physical detriment to the district."
According to the insurance industry, about 30 states have pursued accident response fees. But several states and municipalities have said enough is enough and prohibited rescue fees. The Florida House introduced a bill in February to prohibit local governments from seeking reimbursement for first responders. Last year, the state of Georgia passed a bill outlawing accident response fees and the state of Indiana has done the same.
Insurance industry spokesperson Carole Walker said even if your insurance company does pay the actual accident response fee, consumers will eventually pay through higher insurance costs.
"But it adds up to big bucks and the consumer ultimately pays for that," Walker said.
Additional Resources
The following is a Web site set up by the insurance industry in Ohio:
http://www.accidentresponsefees.com
(© MMIX CBS Television Stations, Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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