Iowa City votes to ban electronic ads on taxis

The city may be headed toward a fight over advertising on taxicabs.

The City Council voted 6-1 Tuesday night to prohibit electronic and animated signs on taxis and to require that taxis be in compliance with city and state laws in order to pass a city inspection. Two more votes are required before the changes become law.

The matter came before the council after Five Stars Taxi asked if it could put electronic advertising signs on its vehicles' roofs.

Co-owner Hatem Moustafa said after the meeting that the company would consider a legal challenge.

The state outlaws “flashing lights” on vehicles like taxis, but it does not define that term. The city consulted with the Johnson County Attorney's Office, which concluded an electronic advertisement would be a flashing light but said a judge may disagree, City Attorney Eleanor Dilkes said.

Iowa Department of Transportation Spokeswoman Dena Gray-Fisher said a flashing message likely would be illegal under state law, but there is nothing prohibiting scrolling messages.

Moustafa said the signs would be digital with a moving or scrolling advertisement.

“It's not like a flashing light,” he said.

Yasser Gaber, another Five Stars Taxi co-owner, said the advertisements would bring in some extra cash to help the company make it through the recession.

“I believe it's a great idea,” he said. “We've seen that in big cities, like New York and Chicago.”

The majority of the council said it's more of a question of state law, which the city cannot trump. If the county attorney believes the electronic ads would run afoul of state law, then it would be irresponsible for the city allow them, council member Regenia Bailey said.

“So, in many ways, we are looking out for our business owners,” she said.

City staff also had concerns that the advertisements could be distracting or confused with emergency vehicles.

Council member Mike Wright cast the dissenting vote and said he didn't believe the electronic advertisements would pose a risk and called a total ban “heavy-handed.”