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TransportationIndustryRegulations
NevadaRevised
Statutes
(Chapter706 Motor
Carriers)

NevadaTaxicab
Authority
(Providesoversightin
ClarkCounty)

ClarkCountyCode
(Includesprovisions
affectingtheindustry)

Nevada
Transportation
Authority
(Servesthebalanceof
theState)
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EntranceofUnregulatedTransportationNetwork
CompaniesintotheSouthernNevadaMarket
TransportationNetworkCompanies(TNCs):Companiesthatuseanonlineenabledplatformtoconnect
passengerswithdriversusingtheirpersonal,noncommercialvehicles

Theentranceofthese
TNCshavethepotentialtocause30%(or
unregulatedcompanies
more)revenueloss tostateandlocal
willsignificantlyimpact
governmentagenciessinceTNCsproposeto
thefundingofstate
operateoutsideofcurrentregulations.Thisis
andlocalmunicipal
averyconservativeestimate industry
entitiesandnegatively experienceandpublicationsdemonstratethat
impactprivate
othermajormarketshaveseenreductionsin
businesses inNevada.
cabuseinexcessof60%.

Thepublicsafetyofthetravelingpublic
maybecompromised. Thereis:
(a) Noregulationofdriversuitability.
(b) Noregulationtoensurevehicle
safetystandards,amongothers.

ImpactstotheBroadBasedCommunity

Demonstratesrevenuesinuringto
stateand/orlocalgovernmentsto
covercostsofprovidingservices
(a)
(b)
(c)
(d)
(e)
(f)

ModifiedBusinessTax
AirportPickupFees
Sales&UseTax
CommercialVehicleRegistrationFees
MedallionFees
NevadaTaxicabAuthorityFees

Referstojobs,wagesand
businessactivity(oroutput)
generatedthroughoutClark
Countyasaresultofthetaxicab
industrysongoingoperations
(a) DirectImpacts
(b) IndirectImpacts
(c) InducedImpacts

Socioeconomic
Impacts

Economic
Impacts

Fiscal
Impacts

Thisanalysisillustratestheimpacts(fiscal,economicandsocioeconomic)
resultingfromtheTNCsproposedoperatingmodel.TNCsshouldberequired
toverifiablydemonstrateanyoffsetstotheseidentifiedlosses.

Communityimpactsrelatedto
significantjoblosses
(a) Corporategoodcitizenswho
providegoodjobswith
benefitsandwhosupporta
widenumberofpublicand
charitableinstitutions
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FiscalImpacts
30%RevenueLoss SouthernNevada
MunicipalAgency
McCarranInternationalAirport
AirportPickupFees
NevadaTaxicabAuthority
TripChargeFees
MedallionFees
ClarkCountyMedallionFees
DriverExaminations
Total
StateGeneralFund
ModifiedBusinessTax
State,schools,countyandcities,countyoptiontax
SalesandUseTax
HighwayTrustFund,StateGeneralFund,County/Cities
VehicleRegistrationFeesandGST.
Total

CalendarYear LostRevenue
2014Amounts
@30%
$7,632,478

$2,289,744

$5,522,833
$273,000
$191,100
$155,030
$6,141,963

$1,656,850
$81,900
$57,330
$46,509
$1,842,589

$2,156,726

$647,018

$1,379,430

$412,776

$1,359,780
$18,670,377

$406,896
$5,599,023

Notacomprehensivelisting.
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EconomicImpactComponents

EconomicImpacts
30%RevenueLoss SouthernNevada
TransitandGroundPassengerTransportation
$56.0M

InducedImpacts

$29.6M

IndirectImpacts

$122.5M1

TotalEconomicOutput
Impact
$208.1M

DirectImpacts

Output
1

30percentreductioninindustryrevenue

EconomicImpacts
30%RevenueLoss SouthernNevada
TransitandGroundPassengerTransportation
$18.2M

InducedImpacts

$11.0M

IndirectImpacts

$70.3M

DirectImpacts

TotalLaborIncome
Impact
$99.6M

LaborIncome
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EconomicImpacts
30%RevenueLoss SouthernNevada
TransitandGroundPassengerTransportation
440

InducedImpacts

226

IndirectImpacts

1,181

TotalJobsImpact
1,847Jobs

DirectImpacts

Jobs
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TNCsShouldPayFairShareofFundingforStateand
LocalGovernmentAgencies
Minimumof$5.6millionrevenuelosstostateandlocalgovernmentagencies
attributabletotheentranceofTNCsintoSouthernNevadacanbedemonstrated.
ItisincumbentonTNCadvocatestoclearlyandverifiablydemonstratethevalue
ofoffsettingimpacts.Forexample,willTNCspay:
StateGeneralFund
ModifiedBusinessTax

NevadaTaxicabAuthority
Tripcharges
Medallionfees
Driverexaminationfees

McCarranInternationalAirport
Airportpickupfees

Schools,county,citiesandotherlocalgovernmentagencies
SalesandUseTax
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OtherConsiderations
SocioeconomicImpacts
Taxicab
Industry

TransportationNetwork
Companies(TNCs)

SignificantcorporatepresenceinSo.NV

NoIRStipreportingandwithholding
program
Verifiablewageinformationislacking

Sizeableinfrastructureinplacetosupportoperations

Parkinggarages,maintenanceyardsandfacilities,body
shops,etc.
Representsignificantinvestmentcoststotheindustry

Significantsupporttopublicinstitutions,
foundationsandcharities
Ownersandemployeesaregood
corporatecitizens
IndustryparticipatesinIRStipreporting
andwithholdingprogram
ProfitsarereinvestedinNevada

TNCsuseparttimeemployees nobenefits
TNCdriverspaytheirownoperatingexpenses

TNCsexport$0.20ofeverydollarearned
tocorporateownersoutsidethestateof
Nevada.
SignificantexportofwealthfromstateofNevadatoout
ofstateowners

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OtherConsiderations
SocioeconomicImpacts(cont.)
Taxicab
Industry

TransportationNetwork
Companies(TNCs)

Anestimated1,847jobsareatrisk
(accordingtoIMPLANestimate)
NevadaTaxicabAuthorityrequiresthe
industrytoreplace20%ofitsfleet
annually
Maintainssignificantinfrastructureto
supportitsoperations
NevadaTaxicabAuthorityinspectsvehicles
onaregularbasistoensurevehiclesare
safe
NevadaTaxicabAuthorityscreensall
potentialdriversforcharacter

AnyoffsetjobsbyTNCshavenotbeen
described
TNCdriversusepersonalvehicles there
isnoverifiablevehiclereplacement
requirement
Researchshowsnosuchinfrastructure
improvementswilloccurw/TNCentrance
TNCshavenosuchinspection
requirementstosafeguardthetraveling
public
Researchshowsthereisnotsimilar
screeningperformedforTNCdrivers
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OtherConsiderations
SocioeconomicImpacts(cont.)
Taxicab
Industry

TransportationNetwork
Companies(TNCs)

NevadaTaxicabAuthorityoverseestaxi
operationsinSouthernNevada
NevadaTaxicabAuthorityisfunded
primarilythroughmedallionfeesandtrip
chargerevenuespaidbyregulatedtaxicab
companies
Maintains24hourliabilityinsurance
coverageforitsvehiclesinadditionto
generalliabilityandumbrellacoverage

Nosimilarrequirementsoroversightthat
addresssimilarissueswithTNCs
Nosourcesoffundsidentifiedtooversee
theactivitiesofTNCs
Itisunclearwhatinsurancerequirements
protectTNCdriversandpassengers

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OtherConsiderations
SocioeconomicImpacts(cont.)
Taxicab
Industry

TransportationNetwork
Companies(TNCs)

Tripfaresaredeterminedbyacertified
meter.Thefareforthesametriptaken
multipletimesisthesame.
Taxicabdriversmusttakedrivingtest
annuallytomeetdrivingandlanguage
proficiencyrequirements
Taxicabcompaniespayrealandpersonal
propertytaxesoninfrastructurethat
supportstheiroperations.Proceedspay
forpolice,fire,parksandrecreation,
indigentcare,etc.

SurgepricingmodelsforTNCscreate
inconsistentpricingandthusuncertainty
forthepatron
TNCsdonothaveanysuchdrivertesting
requirementstoensurethesafetyofthe
travelingpublic
Nosimilarinfrastructurethatwillgenerate
similarrevenues

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Summary
Theanalysisdemonstratestheimpactofa30%revenuelossto
thetaxicabindustryinSouthernNevada.
Estimated1,847jobslostinSouthernNevada
$5.6millionrevenuelosstostateandlocalmunicipalities
$208.1millioneconomiclosstoSouthernNevada

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CurrentStatusoftheTaxicabIndustryin
SouthernNevada
Taxicabfleetvehicles

3,726

Taxicabdrivers

7,787

Taxicabtrips2014

27,614,166

TaxicabtripsoriginatingatMcCarranAirport2014

3,816,239

Tripchargerevenueat$0.20pertrip

$5.5million

McCarrantripchargerevenueat$2.00pertrip

$7.6million

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