Goldwater Institute: Lawsuit possible over Sky Harbor rideshare fees

By Mike Sunnucks | Rose Law Group Reporter

The Goldwater Institute is warning the city of Phoenix it could face lawsuits if the City Council approves proposed higher rideshare fees for Lyft and Uber rides at Sky Harbor International Airport.

Goldwater Institute National Litigation Director Jon Riches sent a letter to Phoenix Mayor Kate Gallego yesterday voicing concerns the proposed higher Lyft and Uber fees could run a foul of a voter-approved Arizona law restricting taxes on services.

Riches is referring to Proposition 126, which voters approved last year and restrict municipal taxes on services.

The Phoenix City Council is looking at raising fees on rides to and from Phoenix Sky Harbor International Airport to as much as $10 roundtrip. The city currently charges a $2.66 fee for rideshare pickups at Sky Harbor and there is no current fee for drop-offs.

Lyft has said it might end service at the Phoenix airport if the fees are approved.

Riches said the fee increase could also result in litigation for countering Prop. 126.

“The city of Phoenix is attempting to raise rates by 200 percnt for customers using ride-sharing platforms like Uber or Lyft when they travel at Sky Harbor Airport. And it’s doing so in direct violation of the Arizona Constitution, which was amended with overwhelming voter support just last year to prohibit fee increases of exactly this sort,” Riches said.

The Phoenix City Council is scheduled to consider the rideshare fees this month.

Read the letter here:

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