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Proposed Fee Sticks Non-Residents With Accident Costs

Critics Say 'Crash Tax' Will Cost Everyone

POSTED: 5:13 pm MDT September 16, 2009
UPDATED: 8:46 am MDT September 17, 2009

If you’re driving through Denver and don’t live in the city, drive safely; an accident could cost you extra.

Under the proposed 2010 Budget, the Denver Fire Department would charge non-residents a $600 fee for emergency care if they cause an accident on a state highway (which includes the heavily-traveled Colorado Boulevard, Federal Boulevard, Colfax Avenue and Sheridan Boulevard).

”Because of the budget, we think it’s only fair to our own citizen who are paying taxes that we charge this fee,” said Claude Pumilia, the city of Denver’s chief financial officer.

“When you think about non-residents, they’re not paying taxes for the city and county of Denver, and effectively, when emergency medical services are sent out, our own residents, who are paying taxes, are subsidizing that service,” Pumilia said.

Pumilia said that fee alone would generate more than $1 million next year and that other cash-strapped Colorado fire departments have already enacted similar measures, including South Adams County Fire and North Washington Fire.

But critics called it a “crash tax” and said in the end, everyone will pay.

”This is something that’s very concerning that’s cropping up across the country and here in Colorado,” said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.

She said more and more struggling cities are implementing emergency service fees, thinking insurance companies will pay them, but she said often they’re not covered.

”If the insurance company does pay for it, it raises our insurance premiums,” said Walker.

Denver pays emergency costs in more than 4,000 non-resident-caused accidents annually, and city financial officers said they are just trying to recover those costs.

The 2010 budget was delivered to the City Council on Tuesday.
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