Gas prices are going back up. So, we should be happy that the city regulates how much cab companies can charge per mile right? Wrong.
I called Custom Cab, one of Duluth's three cab companies, and a driver of theirs was under the impression that the city controlled how much they charged per mile.
But, that is not the case.
I spoke with Marian Collins, the Administrative Information Technician for the City of Duluth, and she assured me that the city doesn't regulate price per mile.
Then, I asked Ms. Collins what it would take to start up a single-employee cab company, and here is what you need to do readers:
- Get a car that is a 2005 or newer, otherwise you will have to run it through other procedures, so that the city can deem your car safe.
- Supply your federal tax ID or Social Security Card number to the Duluth City Attorney.
- Have your car checked by the city police department, so they can deem your vehicle safe and see that your taxi meter is functioning correctly.
- Pay $171 for the yearly license fee, plus a $31 fee for police inspection of your vehicle. (The $31 is fixed and it covers everything that needs to be conducted throughout the entirety of the inspection.)
- Prove that you have liability insurance.
And that is it.
Generally, you would have to show how you are compensating your workers (to the city attorney), but because we are only discussing (hypothetically) a single employee run business there is no need to get into workers compensation. In other words, the single employee would reap all the benefits.
You do not have to register with the IRS in order to become licensed through the city.
Side note— taxi licenses are prorated with 3 months. Meaning, if you come in and register for a license in November of 2015 you will still have to pay a fee for October 2015.
When your paper work is in order and your inspection is cleared, you can head over to the city clerk's office (411 W 1st St.) and submit your paper work. Then, they will process your license.
So, what do we know?
The city does not regulate fairs. They have to approve vehicles and issue licenses.
As long as you have a properly functioning meter, a car, and proof of insurance the sky is the limit. Charge what you want to charge. The city code does not specify a certain age requirement, so as long as you have a state issued license you can run a cab company. Calling all 16-year-olds, quit Culver's and drive me to Grandma's Sports Garden this Saturday.