‘Crash Taxes’ On Mich. Accident Victims Would Be Banned Under New Measure
|Targeted News Service|
House Bill 5706, authored by Glardon, prohibits any
"Crash taxes are a backhanded way to double dip on all hard-working taxpayers, and the practice needs to stop immediately," said Glardon, R-
Glardon said one constituent recently received a bill for close to
"People are getting billed whether they're at fault or not," Glardon said.
Out-of-state companies also are profiting because they solicit municipal governments for the collection of these accident response fees in exchange for a percentage of the recovery.
In most cases, insurance companies are first asked to pay for the accident response fee, and if they refuse the accident victim is billed.
Glardon also said imposing a crash tax can have other negative effects including increasing insurance premiums, deterring economic development and reducing tourism revenue.
HB 5706 now goes to the
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