TheNewspaper.com: Driving Politics
Home >Police Enforcement > Taxes and Tolls > Ohio City Creates Crash Tax 
Print It Email It Tweet It

8/26/2006
Ohio City Creates Crash Tax
Stow, Ohio imposes a tax on non-residents who are involved in a crash.

Cost Recovery Corp Logo
The city of Stow, Ohio has found a way to turn a crash into cash. The municipality enlisted the aid of Cost Recovery Corporation, a for-profit company that bills itself as an "alternate funding source." Cost Recovery suggests the best way to for a city to make money without annoying residents is to make non-residents pay a tax when they are involved in an accident. Non-residents are unable to challenge any decision by the city council and have no voice in local politics.

"The program will yield $350/incident on the average, by collecting from the vehicular insurance without the residents ever receiving a bill," the Cost Recovery Corporation website states. "Studies show that non-residents account for 40-85% of the accidents, depending on the non-resident traffic volume."

Although the website claims that insurance companies will pay the tax without passing the cost on to consumers, insurance companies in most cases reject such bills. The Akron Beacon Journal documented a $401.08 bill delivered to Alex Patterson, 18, after a minor accident. The charges were listed as a $125 fine, $38.08 for a police investigation, $209.44 for the police vehicle to come to the scene, and $28.56 for paperwork.

Although a dozen Ohio cities use these tactics, Stow has temporarily suspended its program and will review it during a council meeting on September 11.

Source: Crash tax should be Stowed (Akron Beacon Journal (OH), 8/26/2006)



Permanent Link for this item
Return to Front Page


Related News
California Judge Busts State For Interfering With Gas Tax Vote

Car Tax Vote Could Doom California State Senator

Subcontractors Shafted In Texas Toll Road Failure

Texas Dumps Failed Toll Road

Florida: Car Rental Companies Settle Deceptive Toll Fee Complaint




View Main Topics:

Get Email Updates
Subscribe with Google
Subscribe via RSS or E-Mail

Back To Front Page


Front Page | Get Updates | Site Map | News Archive | Search | RSS Feed
TheNewspaper.com: Driving politics
TheNewspaper.com