Decisions are being made by Arizona AG on Uber/Lyft FeesTop Stories

December 28, 2019 11:20
Decisions are being made by Arizona AG on Uber/Lyft Fees

(Image source from: fox10phoenix.com)

Opinions on new fees being initiated on Uber and Lyft rides at Phoenix Sky Harbor International Airport violating the constitution of the State will be issued by his office says Arizona Attorney General Mark Brnovich.

State Rep. Nancy Barto responded to the approval of the controversial fees which has been done by the Phoenix City Council earlier this month, by filing an SB 1487 complaint.

The investigation of the constitutionality of the fees by the attorney general was required by the north Phoenix City Council in order to make a determination within 30 days.

Brnovich said that, “our decision will be done on Jan. 17, that’s when the 30 days will run, and we’ll have an opinion, we’ll have a decision before then.”

The new taxes or the increase in the taxes on services has been banned by the approval of a constitutional amendment by the voters in 2018 was the case made by Barto and other opponents as the fees violates it. Phoenix officials have been referring to fees as a rent for using city property at the airport and not as taxes.

“We will make a request from the city of Phoenix for additional information to clarify what’s going on,” said Brnovich. “I think we’ve heard several different reasons as to why they did or didn’t do what they [did]. We’ll get that information and we’ll evaluate it and we’ll make our decision,” he added.

The fee hike being unconstitutional would result in the loss of the state revenue share of the city as it is a third of its general fund budget. Based on the plan that has been approved on December 18 in the city Council meeting, $4 will be charged by the ride-hailing companies for the curbside pickups and drop-offs beginning February 1 ,2020. and the increase in the rates by 25 cents a year can bey noticed until hitting $5 in 2024.

By Shrithika Kushangi

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fee hike  Arizona  Uber  Lyft