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Lyft files lawsuit against city of Las Vegas

Posted: 12:49 PM, Feb 25, 2016
Updated: 2016-02-25 23:30:04Z

Lyft has filed a lawsuit against the city of Las Vegas in response to the city's attempt to levy an illegal tax on ride-sharing.

They released the following statement:

The City of Las Vegas is trying to levy an outrageously high tax on ridesharing that it doesn’t have the legal authority to collect. When state leaders passed AB 176 last year, they prohibited singling out ridesharing with fees that restrict competition and limit consumer choice. As the City has refused to reconsider its illegal tax, we are forced to take action to preserve Lyft’s safe, affordable rides for people in Las Vegas.

The city of Las Vegas told 13 Action News that they do not comment on pending litigation. A spokesperson for the city said that Lyft also filed an objeciton to the ordinance that was recently passed and the objection was filed with the city clerk, which is normal procedure.

The city council voted 4 to 2 in favor of a $50 fee per "active driver" based on the average number of drivers operating over a six-month period. The new fees are scheduled to go into effect in March.

The objection is currently scheduled to be heard by the city countil at the March 15 council meeting.