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St. Andrews PSD approves Crash Tax

From our News Partners at WCBD-TV:

The St. Andrews Public Service District Commissioners in Charleston County voted unanimously tonight to approve a proposal to implement a “Crash Tax.” The Motor Vehicle Service Fee ordinance would charge out-of-area travelers involved in accidents a fee when the Public Service District is called upon to respond. The following statement can be attributed to Jeff Griffith who serves as local counsel for the Property Casualty Insurers Association of America and was at tonight’s meeting.

“The vote tonight is a setback for motorists throughout the Charleston area. While we understand budgets are tight and local officials are looking for ways to increase revenue without increasing taxes, charging for emergency services is not the right approach. The residents of South Carolina already pay taxes and should not be charged a separate hidden fee costing anywhere from $300 to $1,000."

The PSD reports a third party service will not bill the motorists and the insurance company.  The PSD will initiate "soft billing" according to Commissioner Charlie Ledford. Most insurance companies say  they will  not  cover the fee. At  least a dozen other states have banned this fee.  The process is expected to start in 30 days.

Photo Credit: Kentoh Shutterstock

 

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