New York City introduced its taxi medallion system in 1937.
The system came through the Haas Act, adopted during Mayor Fiorello La Guardia’s administration. It responded to a glut of taxicabs that had crowded city streets and reduced drivers’ earnings. The law limited the number of licensed taxis and required each authorized cab to display a transferable license, later known as a medallion.
The restriction made a medallion more than a permit: it became a valuable, tradable asset. New York sold no new medallions for decades, helping create scarcity. The city resumed issuing them in 1996, when it auctioned slightly more than 2,000 licenses.
A common mix-up is 1971, the year the New York City Taxi and Limousine Commission was created. The TLC regulates the industry today, but it did not establish the original medallion system. The 1937 date refers specifically to the system’s introduction.