Yesterday, the NYC Taxi & Limousine Commission (TLC) voted on a proposal to raise NYC taxi fares $.50 per additional 1/5 mile. For longer trips, this will mean an average 17% increase in fares. The proposal included:
- Flagfall rate: no change
- $0.10 increase per additional unit of 1/5 mile, when the taxicab is traveling at 6 miles an hour or more, or 60 seconds when not in motion or traveling at less than 6 miles per hour. This would bring the ‘per additional unit of 1/5 mile’ to $.50.
- $7.00 increase for trips between JFK Airport & Manhattan. This would bring the total fare to $52 plus tolls.
- $2.50 increase for trips to Newark Liberty Airport. This would raise the surcharge to $17.50.
The proposal also asked to change how much taxi drivers pay for credit card processing. Right now, they pay a flat 5% fee. The proposal would implement a flat $9 fee per shift.
If the vote passed, you could see the new NYC cab fares in September 2012.
The last fare increase for NYC cabs was in 2006. We don’t know the increase includes the flagfall rate, the per mile fare, or both. Right now, the NYC taxi fares are:
- $2.50 flagfall rate upon entry
- $0.40 per additional unit of 1/5 mile, when the taxicab is traveling at 6 miles an hour or more, or 60 seconds when not in motion or traveling at less than 6 miles per hour.
- Night surcharge of $.50 8pm – 6am
- Peak hour Weekday Surcharge of $1.00 Monday – Friday after 4pm – 8pm
- New York State Tax Surcharge of $.50 per ride
According to Crains, the New York Taxi Workers Alliance wants this increase based on its claim that drivers are taking home 25% less since 2006, citing a 45% increase in gas prices since 2006.
Every taxi has a Medallion, or a license, to operate and pick up street hails. That Medallion is very valuable, costing about $1 million for a fleet operator and $600,000+ for an individual. The Medallion owner then leases out the taxi to a driver for a flat rate of approximately $105 for a day shift and $135 for a night shift (according to our cab driver last night). After the driver pays for the rental and gas, the rest of the money is his, or hers.