Types of Medallions
Medallions are small metal plates attached to the hood
of a taxi, certifying it for passenger pick-up throughout
the city. Yellow taxicabs with medallions are the only
vehicles authorized to pick up passengers by street hail
anywhere in New York City. There are two different
types of taxi medallions, an independent medallion and a
mini-eet medallion. Each has its own set of rules and
requirements and transfers at a different price point.
An independent medallion is a class of medallion
taxicab license in which the owner may only own one
medallion, and often has an obligation to drive a mini-
mum number of shifts annually. Owners of independent
medallions typically operate as owner-drivers who
own both the medallion and the taxi vehicle. Income
for owners of independent medallions is derived from
the fares and tips received from passengers less the
cost of owning and maintaining a vehicle and medallion.
Often, these owner-drivers will lease their taxis to a
second driver for additional income.
A mini-eet medallion is a class of medallion taxicab
license that must be owned in groups of at least two.
The owners of mini-eet medallions own multiple
medallions and many maintain a eet of taxi vehicles
that are leased to drivers on a per shift basis. Incomes
for eet owners are derived from lease fees less the
cost of operating and maintaining the vehicle.
The Haas Act
Until the mid-1930s, the taxi industry of New York City
had no regulation. There were an unspecied number
of taxis and there wasn’t a set standard for the fares
that could be charged by a driver. This changed in 1937
with the enactment of the Haas Act, which established
the medallion system.
Originally it set a limit of 16,900 taxi medallions.
However, that number was decreased to 11,787 after
World War II. It remained unchanged until 1996 when
it was increased by 133 medallions to a total of 11,900.
As of now, there are 13,437 total taxi medallions in New
York City.
The Haas Act classied the two types of medallions in
use today: independent and mini-eet
It also set up a nominal “60/40” ratio of mini-eet to
independent medallions
The Price of a Medallion
TLC does not set the price of a medallion; instead, the
market sets the price of the medallion. The price of a
medallion depends on a number of factors.
• Taxi fares and tips
• Demand for taxi service
• Availability and cost of taxicab medallion nanc-
ing
• Market for the medallion
• Anticipated return on the investment to acquire a
medallion as compared to other investments
• Cost of operating a taxi
When medallions rst began being traded after World
War II under the Haas Act, the average price was
$2,500. It has grown exponentially since then. The av-
erage annual price of independent medallions increased
260% between 2004 and 2012 while the average annual
price of mini-eet medallions increased 321% over the
same time period. When accounting for ination, prices
still increased 214% for independent medallions and
265% for mini-eet medallions. The annualized return
on investment (ROI) for a medallion over this time
would be about 19.5%. In comparison, over the same
time, the ROI for a similar investment in the S&P 500
would yield a 3.9% annual return.
The value of a mini-eet medallion is much greater
than the value of an independent medallion. In 2013, the
average price of an independent medallion (approxi-
mately $967,000) was about 84% of the average price
of a mini-eet medallion (approximately $1,150,000).
This price differential may be explained by differences
in the medallions, such as a requirement for many
independent medallions that the owner must drive the
taxi, or the fact that mini-eet medallions are often
held by large eet companies which can more easily
lease a taxi for two shifts each day (and thus see a
higher return on their investments). TLC data indicates
that about 58% of the existing medallions are mini-eet
medallions while 42% are independent medallions.
Historical Medallion Prices
Medallion prices have increased during periods of
medallion sales in part due to the fare increases that
have accompanied them. During these periods of sales,
independent medallion prices rose 22% in 2004 and 22
in 2005. Mini-eet medallion prices rose 22% in 2004
and 21% in 2005. In 2006, independent medallion prices
rose 14% while mini-eet medallion prices rose 27%.
Medallion prices rose in 2007 as well by approximately
11% for independent and 19% for mini-eet.
In the Future
Two-thousand wheelchair-restricted medallions are
slated to be sold over the next several years. Already,
200 mini-eet wheelchair-restricted medallions have
been auctioned off at an average price of $2.27 Million
(mini-eet medallions are sold in pairs, making the
average price $1.13 Million per medallion).
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
1970
1975
1980
1985
1990
1995
2000
2005
2010
2013
UNADJUSTED
Independent Medallions
Mini-Fleet Medallions
Independent Medallions
Mini-Fleet Medallions
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
1970
1975
1980
1985
1990
1995
2000
2005
2010
2013
INFLATION-ADJUSTED
2013$
Average Annual Medallion Sale Prices
12
Source: NYC TLC Medallion Sales Database and Consumer Price Index
2014 Taxicab Fact Book