New York State Court of Appeals Hears Argument on Taxi Lease Cap Case

  • November 14, 2011

The Court of Appeals for the State of New York heard argument in Metropolitan Taxicab Board of Trade v. The New York City Taxi & Limousine Commission, a case brought by ECBAWM on behalf of owners and operators of New York City’s taxicab fleets. The case challenges rules adopted in 2009 by the Taxi & Limousine Commission (TLC) that prohibit taxicab owners from charging drivers sales tax on top of the lease cap, the maximum amount owners may charge per shift. Arguing on behalf of the plaintiffs, Richard D. Emery contended that the new rules violated basic New York State and federal administrative law requirements by changing lease rates without any consideration to the costs that would be imposed on the taxi industry. Further, Mr. Emery argued, because the rules were altered to require that sales taxes be charged within the lease cap, the TLC effectively shifted the burden of the tax from the purchaser (taxi drivers) to the seller (taxi owners), directly contradicting state tax law. The plaintiffs in the case are represented by Mr. Emery, Elizabeth S. Saylor, and Julia Einbond of ECBAWM.

To watch the argument, click here.