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Rohnert Park man fights Petaluma's 'crash tax' after wife's collision

  • Dave Albaugh, a Rohnert Park resident, is fighting Petaluma City Hall over a bill his insurance company received after his wife was involved in a traffic accident in Petaluma on January 8. Petaluma billed Albaugh for the fire department's services, which Albaugh says was minimal. (Christopher Chung/ The Press Democrat)

Dave Albaugh was waiting to hear if his wife's car was repairable after a collision when he got an unexpected call from his insurance agent. She asked about a $550 bill to reimburse Petaluma for sending emergency personnel to the crash.

Albaugh, a retired Coast Guard lieutenant commander, was surprised, thinking his taxes already pay for such public services.

But the more he researched, the angrier he got. And he's not slowing down.

At issue is an "accident response fee" or "crash tax" that Petaluma charges nonresidents for sending fire and paramedic personnel to wrecks they cause.

Albaugh -- and some politicians and insurance companies -- say the charge is unfair, discriminatory and an illegal form of double taxation.

"It's a scheme. It's a revenue tax that's flying under the radar that the public doesn't know about," said Albaugh of Rohnert Park, whose wife and daughter work in Petaluma.

The city and its billing company, Fire Recovery USA, defend the fee as necessary to recover of the cost of services provided to those who don't pay property taxes in Petaluma. Those taxes, in part, fund emergency services.

It's an issue that surfaced about seven years ago when the economy soured and local jurisdictions sought additional ways to increase revenues to ease budget shortfalls.

State law allows municipalities to seek cost-recovery fees, but cities have passed different ordinances that create a patchwork of rules motorists are subject to -- mostly unknowingly until their insurance company receives a bill, as in Albaugh's case.

Thirty-four states allow the fees, while 13 others have banned them. In California, about five dozen cities charge the fee, although none besides Petaluma in the North Bay.


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