New Chicago Revenue Ordinance - Impact on Taxis
The new Chicago revenue ordinance that went into effect on January 1st, 2020 has some elements that substantially impact the taxi industry. We've excerpted and attached the relevant sections of the ordinance, and the full text of the new ordinance can be found here.
Medallion renewal fees have been halved - $500 now covers the two-year medallion licensure period. (9-112-150)
Taxicab leasing (9-112-230) has changed in a few ways. Vehicle age is no longer determinative of the lease rate, and the rates themselves have gone up slightly. There is now an hourly lease option. Additionally, the language allowing for additional lease rates to cover GTT and WAV fees has been stricken.
Small estate affidavits can now be used to transfer ownership of a medallion. (9-112-430)
The GTT rules for TNPs have changed substantially, in line with the new tax regime discussed in late 2019. Additionally, and perhaps of more interest, the lease transaction tax now applies to folks who own and lease out vehicles to TNP drivers. (3-32-050)
It remains to be seen if these changes can improve the fortunes of the Chicago taxi industry. As always, give us a call if you have any questions about the new revenue ordinance or licensing in Chicago.