Taxicab Lease Rates
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
This rule amends the Taxi and Limousine Commission’s rules governing the leasing of taxicabs or taxicab medallions. The Commission’s authority to make this rule is found in section 2303 of the New York City Charter and section 19-503 of the New York City Administrative Code.
The Commission held a lease cap hearing on May 31, 2012. These rules reflect evidence and testimony gathered at the hearing.
The proposed rules:
- Change the mechanism by which medallion owners collect credit card charges from drivers with a lease cap increase.
- Eliminate the lease cap differential applicable to hybrid vehicles.
- Authorize (but do not require) lessors who lease their medallions and vehicles on a shift basis to charge a lease cap surcharge for gas they provide to drivers who lease from them.
- Create a new class of lease, the Standard Medallion Lease, which includes long term lease of a vehicle or conditional purchase of a vehicle. The lease cap for the Standard Medallion Lease takes into account the cost of the vehicle.
In addition, as required by the Stipulation and Order of Dismissal of MTBOT, et al., v City of New York, No. 08-7837, these rules rescind the rules that, beginning on May 1, 2009, would have reduced the maximum lease rates that an owner of a non-hybrid taxicab could charge a driver. As a result of a preliminary injunction granted by the district court of the Southern District of New York on June 22, 2009, those rules were never enforced.