"The pilot program imposes a tax rather than a regulatory fee, because
the revenues exceed the cost of the service to be provided, or of the
cost of regulation," said San Francisco attorney George Surmaitis, who
filed suit on behalf of 6,000 taxi drivers currently on the
waiting list to get medallions.
"Here the mayor has been quoted and
came out and said this is a means of generating revnue for the city
because of their budget shortfalls. It's not a way to run the program,
but a way of generating fast revenue. The case law generally has
considered that situation to be a tax, and it therefore must be put
before the voters. Under the California constitution, that's what's
required."
Christiane Hayashi, the Municipal Transportation Agency's taxi director, said she had not seen
the suit yet when I contacted her -- but noted the city had been expecting
something like this.
"This does not come as a surprise," she said.
The cabbies tomorrow will file a request for a restraining order in an attempt to halt hearings scheduled to begin Friday, in which city taxi authorities evaluate whether drivers wishing to buy medallions are fit for the job.
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