4-78 Fees | Phoenix City Code

Sec. 4-78. Fees.

A. Trip fees. Except for off-airport rental car companies, effective May 1, 2020¹, all authorized providers will pay the trip fees set forth below.

1. Transportation network companies (TNC), all vehicle sizes.

Effective Date	Drop-Off	Pick-Up
May 1, 2020	$4.00	$4.00
January 1, 2021	$4.25	$4.25
January 1, 2022	$4.50	$4.50
January 1, 2023	$4.75	$4.75
January 1, 2024	$5.00	$5.00

Beginning January 1, 2025, transportation network company trip fees will automatically increase annually at the greater rate of three percent or the percentage change in the most current Consumer Price Index for All Urban Consumers (CPI-U), Phoenix-Mesa-Scottsdale, published by the U.S. Department of Labor, Bureau of Labor Statistics (or similar revised index published by the Bureau).

2. Non-TNC authorized providers.

Vehicle Size	Drop-Off	Pick-Up
1—8 Seats	$1.75	$1.75
9—23 Seats	$2.25	$2.25
24+ Seats	$5.00	$5.00

Beginning January 1, 2021, non-TNC authorized provider trip fees will automatically increase annually at the greater rate of three percent or the percentage change in the most current Consumer Price Index for All Urban Consumers (CPI-U), Phoenix-Mesa-Scottsdale, published by the U.S. Department of Labor, Bureau of Labor Statistics (or similar revised index published by the Bureau).

3. For authorized providers using global positioning system (GPS) trip tracking, trip fees apply each time a driver enters a geofence, makes one or more stops, and completes a pick-up or drop-off of one or more passengers. For all other authorized providers, trip fees apply each time a driver enters or exits an airport and stops at one or more designated passenger pick-up or drop-off locations.

4. For authorized providers using GPS trip tracking, if an authorized provider’s GPS trip tracking system fails (downtime), and the authorized provider is unable to account for trips during the downtime in the subsequent monthly report, the Aviation Director will determine that authorized provider’s monthly fee for the downtime based on the provider’s highest monthly number of passenger pick-ups or drop-offs in the last 12 months for the same amount of time, taking into account the time of day and day of week.

5. Authorized providers using GPS trip tracking, and all authorized providers using designated pick-up or drop-off locations where there is no automated vehicle identification (AVI) reader, shall report all trips for that month to the City no later than 15 calendar days after the last day of the month.

6. The Aviation Director will discount an authorized provider’s monthly trip fee invoice by ten percent for each trip made by alternative-fuel-powered vehicles or 40 percent for each trip made by zero-emissions vehicles. The Aviation Director will also discount the invoice 30 percent for each trip that initiates or terminates at the 44th Street or 24th Street PHX Sky Train station, as those areas are formally identified by the Aviation Director.

7. All fees assessed pursuant to this section shall be paid on a monthly basis on or before the thirtieth day from the billing date, and payment shall be made with forms prescribed by the Aviation Director for reporting, computing and remitting said fees.

8. An authorized provider may dispute the calculation of trip fees as provided in airport rules and regulations.

9. An authorized provider may request specific documents provided to the City be treated as confidential or proprietary (collectively confidential); provided, that the authorized provider clearly labels the documents "confidential." The City will notify the authorized provider in writing of any public records request to view the documents or any portion of the documents marked "confidential." Authorized provider will have seven calendar days from the date such notice is received to obtain a court order enjoining the release of the documents marked confidential. If the authorized provider does not provide the City with a court order enjoining release of the documents, the City will make the documents requested available for inspection as required under the public records law seven calendar days after the written notice to the authorized provider is received.

10. The TNC curb share will be 30 percent beginning May 1, 2020; 40 percent beginning January 1, 2021; and 50 percent beginning January 1, 2022. Beginning January 1, 2023, and adjusted annually thereafter, the TNC curb share will be equivalent to the percentage of all TNC terminal trips compared to all authorized provider terminal trips during the preceding year.

B. The Aviation Director may establish such other fees for temporary or daily use permits as the Aviation Director deems necessary for the safe, efficient and orderly operation of an airport.

C. Books and records.

1. Authorized provider agrees to maintain and make available to the Aviation Department during regular business hours accurate books and accounting records relating to its operations under this article. Authorized provider shall make available all records within Maricopa County. If authorized provider fails to make available all records within Maricopa County, authorized provider agrees to reimburse the Aviation Department for reasonable expenses involved in traveling to the records storage site. Authorized provider shall cooperate with the inspection and/or audit. In the event an inspection or audit shows that authorized provider has underpaid its monthly fees by more than three percent, the Aviation Department may require authorized provider to reimburse the Aviation Department for the costs of the inspection and/or audit. Authorized provider shall promptly remedy any noncompliance found through the inspection and/or audit. Authorized provider shall maintain the data and records in an accessible location and condition for a period of not less than five years from the expiration of its contract or permit, or the last date of operations on an airport, whichever is later.

2. The Aviation Director reserves the right to request any and all reports deemed necessary from authorized provider in its performance under this article, or for auditing purposes, at no cost to the Aviation Department. These reports shall be submitted within ten business days from the date the request was made unless instructed otherwise in writing by the Aviation Director.

D. Off-airport rental car companies and vehicle rental companies subleasing space from a fixed base operator shall pay, for the use of off-airport rental car company vehicles at the RCC, a fee of seven percent of the gross receipts received from that portion of the vehicle rental company’s vehicle rental receipts derived from persons transported between the airport and such vehicle rental facility. The fees to be imposed at Phoenix Deer Valley Airport and Phoenix Goodyear Airport shall be commensurate in amount and application to identical fees imposed at Phoenix Sky Harbor International Airport as set forth in subsection E of this section.

E. For purposes of computing gross receipts in this section Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport and Phoenix Goodyear Airport shall each be considered an independent operation, and the rental receipts derived from each airport shall be reported in accordance with the following:

1. Gross receipts includes all amounts received, billed (whether collected or not), delivered or realized by the off-airport rental car company, without deduction or offset, whether by cash, credit or otherwise related to the off-airport rental car company’s vehicle rental concession as authorized by this article. All amounts are included in the definition of gross receipts unless specifically excluded as provided in subsection (E)(2) of this section. In determining whether an amount is or is not included in gross receipts the burden of proof is on the off-airport rental car company and all exclusions in subsection (E)(2) of this section will be construed narrowly.

2. Gross receipts shall not include:

A. Taxes—Any fee or other charge levied by Federal, State, County or municipal government that is explicitly identified by the taxing authority as a tax levied on the customer and required by law to be separately stated.

B. Customer facility charge—As defined in Section 4-79 when collected and remitted to the City.

C. Sums received for loss, conversion, disposal or abandonment of the off-airport rental car company’s vehicles; provided, that the off-airport rental car company retains documentation from a third party that establishes to the City’s satisfaction that the loss, conversion, disposal or abandonment occurred, and that the sums received do not exceed the amount necessary to repair or replace the vehicle that was subject to the loss, conversion, disposal or abandonment.

F. No deductions shall be allowed from gross receipts for the payment of franchise fees or taxes levied on the off-airport rental car company’s activities, facilities, equipment or real or personal property of the off-airport rental car company.

G. Each off-airport rental car company acknowledges that its payments to the City under this article are for the company use of the airport, and that those payments do not reflect a fee that is imposed by the City upon customers renting cars from the company. Each off-airport rental car company understands that the City does not support the practice of transferring the company obligation for payment of the fees due under this article to its customers. Except as provided under Section 4-79, each off-airport rental car company is prohibited from stating or implying, in writing or orally, that the City or airport imposes or approves of any direct charge to its customers, including any surcharge that the company passes on to its customers to recoup airport use fees. Each off-airport rental car company is prohibited from misrepresenting to the public its prices or the terms and provisions of its rental agreement or those of its competitors, either orally or in writing. If an off-airport rental car company separately states and imposes a fee recoupment charge, recovery fee, or surcharge on its customers, that charge shall be immediately adjacent to time and mileage charges on the customer’s invoice and shall not be described as a tax.

H. Each off-airport rental car company shall report all income, both cash and credit, in its monthly gross receipts statement to the City.

I. All off-airport rental car companies shall keep true and accurate account records, books and data which shall, among other things, show all sales made and services performed for cash or credit or otherwise, without regard to whether paid or not, and also the gross sales of said business and the aggregate amount of all sales and services and orders, and of all of the off-airport rental car company’s business conducted from the airport.

J. The City and its agents shall have the right, at all reasonable times and during all business hours, to inspect and examine such records, cash registers, books and other data as required to confirm the gross receipts as defined above.

K. Within 90 days after the end of each calendar year, the off-airport rental car company, at its sole expense, shall submit to the City a certified annual statement of gross receipts, prepared by an independent certified public accountant in accordance with the statement on auditing standards issued by the Standards Board of the American Institute of Certified Public Accountants ("AICPA Standards"), as the same may from time to time be amended or superseded:

Annual Gross Receipts	Annual Audit Statement
$0.00—$999,999.00	File a written audit statement based on a review which indicates that nothing in the inquiries or analytical testing has caused the reviewer to determine that the off-airport rental car company’s payment of the concession privilege fee was inaccurate.
$1,000,000.00—Up	File a written audit statement based upon an examination which contains an opinion that the concession privilege fees paid by the off-airport rental car company for the calendar year were made in accordance with the terms of this article. If the off-airport rental car company delivers a qualified opinion, an adverse opinion or a disclaimer of opinion as defined by the AICPA Standards, this shall constitute a failure to comply with the annual statement requirement.

Annual Gross Receipts

Annual Audit Statement

$0.00—$999,999.00

File a written audit statement based on a review which indicates that nothing in the inquiries or analytical testing has caused the reviewer to determine that the off-airport rental car company’s payment of the concession privilege fee was inaccurate.

$1,000,000.00—Up

File a written audit statement based upon an examination which contains an opinion that the concession privilege fees paid by the off-airport rental car company for the calendar year were made in accordance with the terms of this article. If the off-airport rental car company delivers a qualified opinion, an adverse opinion or a disclaimer of opinion as defined by the AICPA Standards, this shall constitute a failure to comply with the annual statement requirement.

L. In the event of an overpayment or underpayment by the off-airport rental car company, an amount equal to such payment shall be promptly paid by, or credited to, the off-airport rental car company. If, through an audited statement, it is established that the off-airport rental car company overpaid the City, reimbursement will be conditioned upon the off-airport rental car company providing reasonable justifications for the overpayment that are satisfactory to the City.

M. Off-airport rental car company vehicle fees shall be paid in accordance with the following schedule:

1. All fees assessed pursuant to this section shall be paid on a monthly basis on or before the twentieth day of the month next succeeding the month in which the fee accrues, and payment shall be made with forms prescribed by the Aviation Director for reporting, computing and remitting said fees.

2. Fees shall be deemed delinquent and assessed a delinquent account fee in accordance with Section 4-7.

N. Taxicab fees shall be assessed and collected in accordance with the current service contracts between each contracted taxicab owner and the City.

O. The Aviation Director may, in the Aviation Director’s sole discretion, waive any or all of the fees assessed by this section at Phoenix Goodyear Airport or Phoenix Deer Valley Airport when the Aviation Director determines that it is not cost-effective to assess and collect such fees.

P. Failure to comply with the terms of this article or pay the fees as required may result in a nonrenewal of the commercial ground transportation permit as provided in Section 4-68, or a suspension or revocation of the permittee’s permit as provided in Section 4-75. (Ord. No. G-4116, § 2, 1998; Ord. No. G-4360, § 6, 2001; Ord. No. G-4375, § 1, 2001; Ord. No. G-4418, §§ 1, 2, 2002; Ord. No. G-4735, § 10, 2005; Ord. No. G-4764, § 1, 2005; Ord. No. G-4862, § 4, 2007; Ord. No. G-4878, § 1, 2007; Ord. No. G-5451, § 3, 2009; Ord. No. G-6164, 2016; Ord. No. G-6650, § 6, 2019)

1 Code reviser’s note: The rates set out in Ord. No. G-6650 were to go into effect February 1, 2020, but were stayed pending a constitutional challenge that was rejected by the Arizona Supreme Court. The new effective date of May 1, 2020, was set by the City.