Petitions contending the sales and use tax of $24 per shift imposed on the lease of taxis in New York were rejected June 12, 2003. This is a result of current tax law which requires that a sales tax be imposed on any tangible item which is purchased, rented, leased or licensed to use or consume. Claims by petitioners that the resale exemption should be applied to the leasing of a taxi were rejected because the driver is required to drive the taxi, and therefore provides the service. The taxi is not the true provider of the service. It was also decided that the imposition of a rental car use tax on taxi rental was reasonable due to the statutory meaning of “rental” which falls within the realms of the possession of a leased taxi for 12-hours. (New York Supreme Court, Appellate Division, Third Judicial Department, No. 91653, June 12, 2003)