New Milton bylaw introduces annual fee for rideshare apps, reduces fees for taxi and limo drivers

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Published June 20, 2023 at 1:11 pm

A new bylaw approved by Milton Town Council on Monday aims to “level the playing field” for taxi, limousine and modern transportation network companies (TNCs) like rideshare apps Uber and Lyft.

The new bylaw, replacing the Town’s existing Taxi and Limousine Licensing Bylaw 094-2004, introduces a $20,000 annual fee for TNCs and will require the TNC broker (on a quarterly basis) to provide the Town with a list of its drivers registered to provide services in Milton.

Until now, TNCs weren’t required to pay a fee to operate in Milton.

“Licensing and enforcement staff will review and audit the driver information to ensure the requirements within the proposed bylaw are adhered to,” according to a report that went to Council on Monday, June 19.

“It is estimated that the reviews will take 40 hours each quarter to process, assuming 5,000 drivers.”

The proposed annual fee of $20,000 is intended to cover the time needed for the Town to complete the audit process.

Fees for taxi and limo owners and drivers, on the other hand, are planned to be reduced as the Town begins to rely on vehicle safety information from the Ministry of Transportation rather than performing safety inspections on each vehicle.

The following fee changes would go into effect starting August 1, 2023:

As for the financial impact, it’s anticipated the bylaw will result in reduced license revenue of approximately $27,000 for 2023 (assuming the same volume of license applications as 2022), but would be more than made up for by the TNC driver fee which would provide an estimated additional revenue of $40,000.

According to the report, the new bylaw was developed in consultation with residents via a Citizen Engagement Survey and consulting with the local taxi industry and Milton Accessibility Advisory Committee.

Staff also looked at Vehicle For Hire by-law regulations implemented in other communities such as Brampton, Burlington, Halton Hills, Hamilton, Mississauga, Oakville, Oshawa and Vaughan.

The Town’s Licensing & Enforcement Unit says it’s seen a decrease in licensed taxi brokers, owners and drivers over the past four years, which could be attributed to challenges related to the pandemic as well as the growing presence of TNCs in Halton Region.

“Updating this licensing by-law will help Milton keep up with the times, and support fairness across the transportation sector,” said Milton mayor Gord Krantz.

The full report is available here.

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