Can a New York taxicab charge a different fare for the same trip at different times of day?

Plain-English summary

The Town of Poughkeepsie's Deputy Town Attorney asked whether taxicabs operating wholly within the town could charge different fares for the same trip at different times of day. The AG said yes, with one important condition: the fares and the conditions under which they vary have to be conspicuously posted inside the cab.

The statutory path. Article 7 of the Transportation Law gives the State DOT broad authority to regulate common carriers, including rates and fares. But § 151(11) carves out a specific exemption: taxis or livery services in vehicles seating 20 or fewer, operating wholly within a single town (or village or city), where the pick-up and discharge points are chosen by the passenger. For services that fall in that carve-out, State DOT regulation does not apply, and the municipality is free to regulate under its home-rule authority.

Poughkeepsie's local law capped taxicabs at 14 passengers, so the town-regulated cabs were within § 151(11)'s exemption. The town could pass a local law specifically regulating fares if it wanted to, but absent such a law, taxicab fare-setting falls back on the General Business Law's consumer-protection rules.

General Business Law § 396-p(1) is the relevant rule. It requires every taxicab to post, inside the vehicle, a statement of rates, fares, or other charges in a manner legible and conspicuous to passengers. If the charges are "subject to variation," the posting must also include a statement of the conditions of variation. Crucially, § 396-p(1) bars charges greater than those posted. The statute itself assumes fares can vary by condition (time of day, distance, late-night surcharges) as long as the variation conditions are disclosed.

So time-of-day pricing in a Poughkeepsie cab is permitted, provided the cab driver has posted, in a legible and conspicuous place inside the cab, both the time-of-day fares and the conditions defining when each fare applies. The AG noted that nothing in Article 7 of the Transportation Law restricts this for the town-regulated cabs, and the town is free to layer on stricter local-law rules if it wants to.

The AG declined to opine on two ancillary questions: whether taxis must provide fare information in a format accessible to blind passengers (pending litigation), and how many hours a taxi driver may drive (referred to DOT).

Currency note

This opinion was issued in 2002. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What counts as "conspicuously posted"?

The statute requires posting "in the interior" of the cab, in a manner "legible and conspicuous to passengers." That means visible from the passenger seat without effort, in readable typeface, and unobstructed. A driver who hides the posted rates on a dashboard or behind the visor probably has not satisfied the statute.

What variations are permitted?

§ 396-p(1) accommodates "variation" without limiting the kinds. Time-of-day pricing (different rates for daytime, evening, late-night) is one classic example. Distance-based variation, holiday surcharges, and number-of-passenger differentials are others. The key is disclosure: the posted notice must include the conditions defining each variation.

Can the town regulate fares more strictly than the State default?

Yes. Because § 151(11) puts town-regulated small taxicabs outside DOT jurisdiction, the town's home-rule authority covers them. A town can pass a local law fixing fares, requiring a meter, capping rates, or imposing other consumer-protection rules. Op Atty Gen (Inf) No. 96-39 confirmed this earlier.

Does this opinion apply to ride-hail services like ride-sharing apps?

The opinion is about traditional taxicabs. Ride-hail services were not in widespread operation in 2002. New York's later transportation network company legislation occupies its own statutory space, and a ride-hail operator's fare practices are governed by that framework rather than by GBL § 396-p(1).

What if the driver charges more than the posted rate?

That violates GBL § 396-p(1) directly ("No charges greater than those posted may be made"). The remedies depend on local enforcement. A passenger can complain to the town's regulatory officials or, in serious cases, file a consumer protection complaint with the AG's office.

Background and statutory framework

Transportation Law Article 7. This article governs common carriers by motor vehicle, including rates and fares. § 80(1) and § 150 et seq. establish DOT's general authority. § 157, § 158, and § 159, with regulations in 17 NYCRR Part 730, set the rate-and-fare framework for carriers subject to DOT regulation.

Transportation Law § 151(11). The exemption. Taxis and livery services with 20-passenger-or-fewer vehicles operating wholly within a single town, village, or city, where pick-up and discharge are determined by the passenger, are exempt from Article 7. The Legislature left those small intra-municipal services to local regulation.

General Business Law § 396-p(1). The posting rule. Applies to any taxicab available for hire in the State. Requires posted, legible, conspicuous notice of rates and the conditions of any variation, with a ceiling at the posted rates.

Municipal Home Rule Law. A town's general home-rule authority covers regulation of local businesses, including taxicabs. Op Atty Gen (Inf) No. 96-39 has previously addressed the town's authority to regulate § 151(11)-exempt taxis.

Citations

• General Business Law § 396-p(1) (taxicab posted-rate requirement).
• Transportation Law § 151(11) (exemption for small intra-municipal taxi and livery services).
• Transportation Law §§ 157, 158, 159 (DOT rate and fare regulation of common carriers).
• 17 NYCRR Part 730 (implementing regulations).
• Op Atty Gen (Inf) No. 96-39 (town's home-rule authority over § 151(11)-exempt taxis).

Source

• Landing page: https://ag.ny.gov/libraries-documents/opinions/opinions-year
• Original PDF: https://ag.ny.gov/sites/default/files/opinions/I_2002-5_pw.pdf

Original opinion text

OPINIONS OF THE ATTORNEY GENERAL

Page 1 of 2

Opn. No. 2002-5
GENERAL BUSINESS LAW § 396-p(1); TRANSPORTATION LAW, ART. 7, §§ 151(11), 157-159;
17 N.Y.C.R.R. Part 730.
Taxicab operators may charge different fares at different times of day so long as those fares and the
conditions under which they apply are conspicuously posted.
February 21, 2002
Marco Caviglia, Esq.
Deputy Town Attorney
Town of Poughkeepsie
Town Hall
1 Overocker Road
Poughkeepsie, NY 12603

Informal Opinion
No. 2002-5

Dear Mr. Caviglia:
You have asked, with regard to taxicabs operating wholly within the Town of Poughkeepsie,
whether a taxicab operator may charge different fares for the same trip at different times of day. We
conclude that taxicab operators may charge different fares at different times of day so long as those fares
and the conditions under which they apply are conspicuously posted.
The State Department of Transportation has broad authority to regulate most common carriers, see
Transportation Law §§ 80(1), 150 et seq., and Article 7 of the Transportation Law includes provisions
that govern rates and fares of common carriers of passengers by motor vehicles. Section 151(11),
however, expressly exempts from these restrictions any taxi or livery service where such a service is
conducted in vehicles having a seating capacity of 20 persons or less operating wholly within a town and
where the pick-up and discharge points are determined by the passenger. Thus, Article 7 does not restrict
a municipality from exercising its authority under the Municipal Home Rule Law to regulate such taxis
or livery services. See id; see also Op. Atty Gen. (Inf.) No. 96-39.
You have advised that your town has a local law that prohibits taxicabs from transporting more
than 14 passengers. The provisions of Transportation Law Article 7 would therefore be inapplicable to
any taxicab licensed to do business wholly within the town. The town may, if it chooses, adopt a local
law regulating this subject.
In the absence of such a law, the fares charged by taxi operators may vary according to the time of
day. The provisions of General Business Law § 396-p(1) assume that taxicab operators may charge
different fares under different conditions, requiring only that
[e]very taxicab available for hire in this state shall have posted, in the interior thereof,
in a manner legible and conspicuous to passengers, a statement of the rates, fares or other
charges . . . and if such charges are subject to variation, a statement of the conditions
relating to such variation. No charges greater than those posted may be made.

http://www.oag.state.ny.us/lawyers/opinions/2002/informal/2002_5.html

4/20/2006

OPINIONS OF THE ATTORNEY GENERAL

Page 2 of 2

Thus, unless otherwise prohibited by local law, a taxicab operator may charge different fares for trips
having the same points of origin and destination depending on the time of day, provided that such rates
and the conditions under which they vary are conspicuously posted.
The Attorney General renders formal opinions only to officers and departments of State
Government. This perforce is an informal and unofficial expression of the views of this office.
Very truly yours,
JAMES D. COLE
Assistant Solicitor General
In Charge of Opinions
By:_____
EDWARD LINDNER
Assistant Solicitor General

You have also inquired whether taxicab companies are required to provide fare information in a format independently
accessible to blind passengers and whether there is a limit on the number of hours a taxi driver may drive. Because the Office
of the Attorney General is involved in litigation related to your question regarding fare information for blind passengers, we
decline to render an opinion on this portion of your inquiry. You have also inquired about the number of hours a taxi driver
may drive. Because the Department of Transportation has statutory authority to regulate the hours of work for operators of
common carriers, we have referred this question to DOT.

Section 151(11) exempts any:
taxi or livery service conducted in vehicles having a seating capacity of twenty passengers or less pursuant to the jurisdiction
or regulatory control of a city, town or village when service is conducted wholly within such city, town or village and when
such service is available to the general public on a prearranged or demand-response basis over a non-specified or irregular
route with the point or points of pick-up and discharge determined by the passenger, but such taxi or livery service shall not
include van service.

Return to the Index Page
Return to the Home Page

http://www.oag.state.ny.us/lawyers/opinions/2002/informal/2002_5.html

4/20/2006