Metropolitan Taxicab Board of Trade v. Taxi & Limousine Commission

OPINION OF THE COURT

Smith, J.

Regulations of the New York City Taxi & Limousine Commission limit the rates that may be charged by owners of taxicabs who lease those cabs to drivers. In this case, owners challenge a Commission regulation that prohibits owners from collecting sales tax in addition to the maximum permitted lease rates. We hold that the regulation must be annulled, because the Commission has not shown any rational basis for it.

I

The Commission was created by the New York City Charter to serve a number of purposes, among them “to adopt and establish an overall public transportation…