After facing criticism from a number of lawmakers and organizations, New York City Mayor Michael Bloomberg has abandoned a plan to charge car accident victims a “crash tax” if they get into a collision.

The proposed measure was created to help the New York Fire Department (NYFD) with budget issues, and would have charged those involved in car accidents between $365 to $490, depending on whether the crash lead to fire or serious injury. The measure, which has passed in a number of other large urban centers across the country, would have brought in an estimated $1 million in annual revenue.

Those who opposed the measure, including City Council member Peter Vallone Jr. and City Council Speaker Christine Quinn, said that the accident tax would set a dangerous precedent regarding charging for basic emergency public services. Crash taxes have been banned or limited in ten states already for similar reasons.

by Lever Gottfried Ecker PLLC
Last updated on - Originally published on