TLC Rule 58-16(f)(3): Taxi Improvement Surcharge Unpaid

What the rule says

Section 58-16 of chapter 58, subdivision (f), "Taxicab Improvement Fund (TSP and Medallion Owner Responsibility)", has four paragraphs that share one penalty:

Penalty for (f)(1)–(4): $1,000 and suspension until compliance, appearance required.

Who it applies to

Medallion owners, and through (f)(1) and (f)(4), the technology system providers and e-hail application providers that collect fares for them. The surcharge has been collected since January 1, 2015 (§58-26(h)). The rule is written so that the money has a responsible party at each step: the TSP for what it collects, and the owner for anything the TSP didn't collect.

What the fund is for

Chapter 58 connects the fund to accessibility. Section 58-50 sets out payments from the Taxi Improvement Fund to medallion owners who put wheelchair-accessible taxis into service — a hack-up payment and quarterly operational payments, subject to inspection and trip conditions — and pays drivers of accessible taxis $10 for each accessible trip a passenger requested through an approved e-hail provider's call center and the driver completed. The same section requires TLC to review the fund every year and report on whether the surcharge should be lowered, raised or kept the same. In other words, an owner who doesn't pay in is also holding back money meant for accessible service.

How often this charge appears

In OATH's records this code shows up only in 2023 (563) and 2024 (587), with none in 2025. That pattern looks like a focused enforcement effort over two years, but the data doesn't say why it started or stopped, and it shows no outcomes or fines.

Common situations

• Cash fares. When a passenger pays cash, the driver holds the surcharge. Under (f)(2), if the TSP did not collect it, the owner must pay the amount "as remitted by the Taxicab Driver" to the fund. Owners need a process for getting cash surcharges from drivers.
• Switching technology providers mid-year, with a gap in who remitted what.
• An agent or fleet manager handled payments and missed a period. Under §58-18(b), the owner "remains fully accountable" for violations committed by an agent operating the medallion.
• A dispute with a TSP over what it collected and remitted.

Why the suspension matters

The penalty includes "suspension until compliance", and (f)(4) adds that non-payment can block renewal and any other TLC license application by the entity that owes the money. That means a medallion owner with an unpaid surcharge balance can find the medallion suspended and a renewal on hold at the same time. Paying the balance due — and getting written confirmation — is usually the first step toward clearing both.

Drivers: what this means for you

If you lease a yellow taxi, the surcharge is part of the fare you charge, and it is not yours to keep. When a passenger pays by card, the technology provider normally collects it. When a passenger pays cash, you are holding the dollar, and your lease or the owner's process should say how it gets passed on. Keep your trip records and any receipts for amounts you turn over. If an owner later says surcharges went unpaid, records showing what you passed along protect you.

What to do now

1. Find out the period and amount TLC says is unpaid. The summons or a related TLC notice should say.
2. Get the TSP's remittance statements for that period to see what it collected and paid.
3. Work out the cash-trip surcharges drivers paid you and whether they reached the fund.
4. Pay any amount that's actually owed in the way TLC requires, and keep the receipt.
5. Answer the summons by the hearing date. Appearance is required; OATH hearings are generally by phone or online.

Defenses to discuss with a lawyer (general information)

Not legal advice. Because (f)(1) puts collected amounts on the TSP, a representative may ask who actually collected the surcharge for the trips in question, and whether the TSP remitted it. They may also check the period, the amount TLC calculated, and whether payment was made before the summons. See what TLC must prove.

Documents to gather

The summons, TSP remittance statements, your own payment records to the fund, lease records showing how cash surcharges were handled, and any TLC notices. Related pages: 58-15(i)(1) if TLC also sent a directive, the yellow taxi drivers page, taxi payment rules, and paying TLC fines.