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2TransportationIndustryRegulations

NevadaRevisedStatutes

(Chapter706 MotorCarriers)

NevadaRevisedStatutes

(Chapter706 MotorCarriers)

NevadaTaxicabAuthority

(ProvidesoversightinClarkCounty)

NevadaTaxicabAuthority

(ProvidesoversightinClarkCounty)

NevadaTransportation

Authority(Servesthebalanceof

theState)

NevadaTransportation

Authority(Servesthebalanceof

theState)

ClarkCountyCode(Includesprovisions

affectingtheindustry)

ClarkCountyCode(Includesprovisions

affectingtheindustry)

3EntranceofUnregulatedTransportationNetworkCompaniesintotheSouthernNevadaMarket

TransportationNetworkCompanies(TNCs):Companiesthatuseanonlineenabledplatformtoconnectpassengerswithdriversusingtheirpersonal,noncommercialvehicles

Theentranceoftheseunregulatedcompanieswillsignificantlyimpactthefundingofstateandlocalmunicipal

entitiesandnegativelyimpactprivate

businesses inNevada.

TNCshavethepotentialtocause30%(ormore)revenueloss tostateandlocal

governmentagenciessinceTNCsproposetooperateoutsideofcurrentregulations.Thisis

averyconservativeestimate industryexperienceandpublicationsdemonstratethatothermajormarketshaveseenreductionsin

cabuseinexcessof60%.

Thepublicsafetyofthetravelingpublicmaybecompromised. Thereis:

(a) Noregulationofdriversuitability.(b) Noregulationtoensurevehicle

safetystandards,amongothers.

4ImpactstotheBroadBasedCommunity

Demonstratesrevenuesinuringtostateand/orlocalgovernmentstocovercostsofprovidingservices(a) ModifiedBusinessTax(b) AirportPickupFees(c) Sales&UseTax(d) CommercialVehicleRegistrationFees(e) MedallionFees(f) NevadaTaxicabAuthorityFees

Referstojobs,wagesandbusinessactivity(oroutput)generatedthroughoutClarkCountyasaresultofthetaxicabindustrysongoingoperations(a) DirectImpacts(b) IndirectImpacts(c) InducedImpacts

Communityimpactsrelatedtosignificantjoblosses(a) Corporategoodcitizenswho

providegoodjobswithbenefitsandwhosupportawidenumberofpublicandcharitableinstitutions

Thisanalysisillustratestheimpacts(fiscal,economicandsocioeconomic)resultingfromtheTNCsproposedoperatingmodel.TNCsshouldberequired

toverifiablydemonstrateanyoffsetstotheseidentifiedlosses.

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5FiscalImpacts30%RevenueLoss SouthernNevadaMunicipalAgency

CalendarYear2014Amounts

LostRevenue@30%

McCarranInternationalAirportAirportPickupFees $7,632,478 $2,289,744

NevadaTaxicabAuthorityTripChargeFees $5,522,833 $1,656,850MedallionFees $273,000 $81,900ClarkCountyMedallionFees $191,100 $57,330DriverExaminations $155,030 $46,509Total $6,141,963 $1,842,589

StateGeneralFundModifiedBusinessTax $2,156,726 $647,018

SalesandUseTax $1,379,430 $412,776

VehicleRegistrationFeesandGST. $1,359,780 $406,896Total $18,670,377 $5,599,023

Notacomprehensivelisting.

State,schools,countyandcities,countyoptiontax

HighwayTrustFund,StateGeneralFund,County/Cities

6EconomicImpactComponents

7EconomicImpacts30%RevenueLoss SouthernNevada

$29.6M

$56.0M

Output

InducedImpacts

IndirectImpacts

DirectImpacts

TotalEconomicOutputImpact

$208.1M

TransitandGroundPassengerTransportation

$122.5M1

1 30percentreductioninindustryrevenue

8EconomicImpacts30%RevenueLoss SouthernNevada

$70.3M

$11.0M

$18.2M

LaborIncome

InducedImpacts

IndirectImpacts

DirectImpacts

TotalLaborIncomeImpact$99.6M

TransitandGroundPassengerTransportation

9EconomicImpacts30%RevenueLoss SouthernNevada

1,181

226

440

Jobs

InducedImpacts

IndirectImpacts

DirectImpacts

TotalJobsImpact1,847Jobs

TransitandGroundPassengerTransportation

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TNCsShouldPayFairShareofFundingforStateandLocalGovernmentAgencies

Minimumof$5.6millionrevenuelosstostateandlocalgovernmentagenciesattributabletotheentranceofTNCsintoSouthernNevadacanbedemonstrated.

ItisincumbentonTNCadvocatestoclearlyandverifiablydemonstratethevalueofoffsettingimpacts.Forexample,willTNCspay: StateGeneralFund

ModifiedBusinessTax NevadaTaxicabAuthority

Tripcharges Medallionfees Driverexaminationfees

McCarranInternationalAirport Airportpickupfees

Schools,county,citiesandotherlocalgovernmentagencies SalesandUseTax

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OtherConsiderationsSocioeconomicImpacts

SignificantcorporatepresenceinSo.NV Sizeableinfrastructureinplacetosupportoperations

Parkinggarages,maintenanceyardsandfacilities,bodyshops,etc.

Representsignificantinvestmentcoststotheindustry

Significantsupporttopublicinstitutions,foundationsandcharities

Ownersandemployeesaregoodcorporatecitizens

IndustryparticipatesinIRStipreportingandwithholdingprogram

ProfitsarereinvestedinNevada

TaxicabIndustry

NoIRStipreportingandwithholdingprogram

Verifiablewageinformationislacking TNCsuseparttimeemployees nobenefits TNCdriverspaytheirownoperatingexpenses

TNCsexport$0.20ofeverydollarearnedtocorporateownersoutsidethestateofNevada. SignificantexportofwealthfromstateofNevadatoout

ofstateowners

TransportationNetworkCompanies(TNCs)

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OtherConsiderationsSocioeconomicImpacts(cont.)

Anestimated1,847jobsareatrisk(accordingtoIMPLANestimate)

NevadaTaxicabAuthorityrequirestheindustrytoreplace20%ofitsfleetannually

Maintainssignificantinfrastructuretosupportitsoperations

NevadaTaxicabAuthorityinspectsvehiclesonaregularbasistoensurevehiclesaresafe

NevadaTaxicabAuthorityscreensallpotentialdriversforcharacter

AnyoffsetjobsbyTNCshavenotbeendescribed

TNCdriversusepersonalvehicles thereisnoverifiablevehiclereplacementrequirement

Researchshowsnosuchinfrastructureimprovementswilloccurw/TNCentrance

TNCshavenosuchinspectionrequirementstosafeguardthetravelingpublic

ResearchshowsthereisnotsimilarscreeningperformedforTNCdrivers

TaxicabIndustry

TransportationNetworkCompanies(TNCs)

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OtherConsiderationsSocioeconomicImpacts(cont.)

NevadaTaxicabAuthorityoverseestaxioperationsinSouthernNevada

NevadaTaxicabAuthorityisfundedprimarilythroughmedallionfeesandtripchargerevenuespaidbyregulatedtaxicabcompanies

Maintains24hourliabilityinsurancecoverageforitsvehiclesinadditiontogeneralliabilityandumbrellacoverage

NosimilarrequirementsoroversightthataddresssimilarissueswithTNCs

NosourcesoffundsidentifiedtooverseetheactivitiesofTNCs

ItisunclearwhatinsurancerequirementsprotectTNCdriversandpassengers

TaxicabIndustry

TransportationNetworkCompanies(TNCs)

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OtherConsiderationsSocioeconomicImpacts(cont.)

Tripfaresaredeterminedbyacertifiedmeter.Thefareforthesametriptakenmultipletimesisthesame.

Taxicabdriversmusttakedrivingtestannuallytomeetdrivingandlanguageproficiencyrequirements

Taxicabcompaniespayrealandpersonalpropertytaxesoninfrastructurethatsupportstheiroperations.Proceedspayforpolice,fire,parksandrecreation,indigentcare,etc.

SurgepricingmodelsforTNCscreateinconsistentpricingandthusuncertaintyforthepatron

TNCsdonothaveanysuchdrivertestingrequirementstoensurethesafetyofthetravelingpublic

Nosimilarinfrastructurethatwillgeneratesimilarrevenues

TaxicabIndustry

TransportationNetworkCompanies(TNCs)

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Summary

Theanalysisdemonstratestheimpactofa30%revenuelosstothetaxicabindustryinSouthernNevada. Estimated1,847jobslostinSouthernNevada $5.6millionrevenuelosstostateandlocalmunicipalities $208.1millioneconomiclosstoSouthernNevada

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CurrentStatusoftheTaxicabIndustryinSouthernNevada

Taxicabfleetvehicles 3,726Taxicabdrivers 7,787Taxicabtrips2014 27,614,166TaxicabtripsoriginatingatMcCarranAirport2014 3,816,239Tripchargerevenueat$0.20pertrip $5.5millionMcCarrantripchargerevenueat$2.00pertrip $7.6million

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