NU Online News Service, March 25, 2:34 p.m. EDT

New York City Council Member Peter Vallone Jr. has introduced a bill to stop a plan by Mayor Michael Bloomberg to impose a "crash tax" on motorists.

"It seems clear that this is still in their plans and this is the only way we can stop it," Vallone says. "It would set a very bad precedent."

He adds that the fee, which would charge motorists up to about $500 if they are involved in an accident and the fire department responds, would open the door for the other public safety services to do the same.

"We think it would justify the police to begin charging to show up," Vallone says.

The bill to block the fee has "overwhelming support" from council members, Vallone says, but may not be needed if Bloomberg withdraws the proposal.

The insurance industry says the practice is tantamount to "double-taxation," and many times insurance policies do not cover the so-called crash tax, or "accident tax."

The practice is often driven by vendors looking for a cut of the proceeds, says the Property Casualty Insurers Association of America (PCI). Premiums would increase if the crash tax was implemented.

"We already pay income taxes," Vallone continues. "Defenders of the fee have said it is used in other places, but those places don't have income taxes."

The practice has been banned or limited in 10 states.

Special Reports /

N.Y. City Council Moves To Block Crash-Tax Proposal

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