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Monday, May 30, 2011 | 5:03 p.m.
CARSON CITY – The Senate has given preliminary approval to a bill that would take profits from Clark County taxicab companies that charge a $3 fee to riders who use a credit or debit card to pay their fare.
Under the bill, $400,000 would be collected every six months from the taxicab industry and turned over to finance a senior ride program, helping the elderly to pay taxi fares.
Spearheaded by Senate Transportation Committee Chairwoman Shirley Breeden, D-Henderson, the committee changed Assembly Bill 351 to require each company to report every six months their cost to purchase, install and maintain equipment for accepting credit or debit payments. Also included would be the cost of administration and fees paid to the issuers of the credit or debit cards.
The Nevada Taxicab Authority, which regulates the cab industry in Clark County, would be required to set the credit or debit fee charged based on those figures. The fee would only be allowed to cover costs.
The first report is due in January 2012.
The magnitude of the business is shown in Frias Transportation Management, the largest transportation company in Nevada. According to its website, it provides more than 20,000 rides per day in Las Vegas and has a fleet of more than 1,000 taxis and limousines at five companies.
Other taxi companies first started charging the $3 surcharge, then Frias Transportation got permission from the Taxicab Authority to impose the same charge.
Starting in January, the Taxicab Authority must collect $400,000 every six months from the industry for the senior ride program.
Breeden said she became interested in the issue because her 76-year-old neighbor has to take a taxi for such things as shopping for groceries and going to the doctor. She said the $3 fee not only hits tourists, but also locals. “This is anti-consumer,” she said.
The bill should be up for final passage in the Senate on Tuesday or Wednesday. If approved, it would return to the Assembly for possible agreement on an amendment.
The costs of processing credit/debit card use could not possibly be anywhere near $3.00 per use.
Adding such an exorbitant percentage to the already exorbitant cost of a cab ride is an isulting rip-off.
The taxi cos. may not lose too much business because of this but, I'll bet that the drivers have lost and/or will lose tips because of this.
Oh, that's terrific. Hope it passes. Talk about greed. I live around the corner from the airport and the fare to it is $8.00, coming back from that same airport to the same apartment I left from costs me $15.00 and the drivers try to go up Trop to Maryland, over to Flamingo and then down Paradise. You simply go from Paradise to airport and from the airport via Swenson to Paradise again. What's up with cabbies cheating you?
Like Mrs Breeden says, this is anti-consumer. At least the bill
will force the Cab Owners to give back some of the revenue toward a worthwhile program.
I'm curious as to how cab company's were allowed to charge the
charge the fee to begin with, without authorization from the TaxiCab Authority. All the charges arising from the fare meter
are authorized by the Cab Authority and are programed into
the fare meter, with a lock to prevent tampering with them.
If the cab companies set the $3 fee on their own(without TA
approval), they can increase it on their own. What's up?
I drove a cab in Las Vegas for 20 years. I never long-hauled
customers, drove dangerously,or took them to places they didnt
want to go. The Cab Authority told us to be safe, comfortable,
and courteous. So we were. My circle of Cabbie friends was
also faithful to that code.
When I retired in 2008, I didnt recognize the industry I had
joined in 1988. It was corrupt, and drivers' misbehavior(including long-hauling) was given tacit approval by the owners.
I stopped taking cabs in 1998, and always take limos to and from McCarren, the only destination I need to hire someone to
drive me to. The negative image that the public has of the Cabbing industry was created by those in the industry(with
notable exceptions). I cant think of a good reason to ever take
a cab.
Unbelievable!
Looks like I'll be keeping my tip to myself now.
Cabbies are the scum of the earth!!!
Hey..I just figured out a way to avoid having to pay the $3.00 credit or debit card fee..PAY CASH for God's sake..Cash is still good in Las Vegas as I understand..
How about deregulating these stupid cab companies? So they could get make their own exclusive contract with each hotel, so no more long cab lines in front of hotels. They could also use that for the strip clubs, therefore no more backdoor kickbacks. In exchange have taxi zones for the Strip, the Airport & Downtown, for regular folks will know exactly what they have to pay for their trip.
So it is OK to overcharge on a credit card fee as long as we kick back some money to an "approved" cause?
If the cabbie's tip is put on the credit card, the cab companies have to include that amount in their W-2 wage statements and withhold the proper taxes AND pay the employer required taxes on that little extra amount amount.
I can really see the cab companies increasing their own tax burden all for a $3 credit card convenience fee.