New York State Court of Appeals Annuls Rule on Taxi Lease Caps

Reversing the decisions of lower courts, the New York State Court of Appeals annulled a rule of the New York City Taxi & Limousine Commission (TLC) that effectively reduces the rates taxicab owners are allowed to charge the drivers who lease their vehicles. The rule, which was adopted in 2009, prohibited owners from collecting sales tax in addition to the standard lease cap. In a unanimous decision, the Court found that the TLC’s rulemaking was “arbitrary and capricious” and that “the Commission has not shown any rational basis” for it. The plaintiffs in the case, owners and operators of the City’s taxicab fleets, are represented by Richard D. Emery, Elizabeth S. Saylor, and Julia Einbond, of ECBA.

To read the decision, click  here.

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