Form revised November 15, 2007

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Executive Administration	Denise Movius/4.9259	Lawand Anderson/3.2780

Legislation Title:

AN ORDINANCE relating to taxicabs; increasing the taximeter rates for taxicabs licensed to operate in Seattle; increasing the flat rate from the downtown hotel district to the Seattle-Tacoma International Airport; adding a special rate penalty; and amending Section 6.310.530 of the Seattle Municipal Code.

· Summary of the Legislation:

The proposed legislation amends SMC Section 6.310.530 to provide for increases to the current taximeter rates and to the flat fee charge for taxi service from the downtown hotel district to Seattle-Tacoma Airport, effective June 1, 2008.  Additionally, the legislation amends Subsection E7 of SMC Section 6.310.530 to provide the penalty for violation of the prohibition of use of coupons to establish a lower taximeter rate.

· Background:

The current taximeter rates provided for in SMC Section 6.310.530 took effect April 1, 2005 (Ordinance 121737).  Since that time, the cost of living in Seattle has risen by approximately 7% as measured by the Bureau of Labor Statistics’ latest Consumer Price Index for the Seattle metropolitan area.  Gasoline prices have also consistently increased, and recently spiked to more than $3.40 per gallon.  It is necessary to increase the taximeter rates to a level that allows the taxicab industry to recover operational expenses and earn reasonable profits.  Consistent with the taximeter rate increase, the flat fee charge for transportation from the downtown hotel district to Seattle-Tacoma Airport also will be increased from $28 to $30. 

Subsection E7 of SMC Section 6.310.530 prohibits the use of coupons to establish a lower taximeter rate.  When this restriction was established through Ordinance 119872 in 2000, the department failed to include with the legislation the penalty associated with violation of the provision.  The proposed legislation adds the penalty provision and further provides that discounts, as well as coupons, are prohibited for establishing a lower taximeter rates. 

_X_ This legislation does not have any financial implications.