CARSON CITY, Nev. – Executive Limousine acquired Fox Limousine after Fox surrendered its state licensing to the Transportation Services Authority in October.
Fox had attempted to expand the size of its fleet this past summer, triggering opposition from local competitors and an investigation from the Transportation Authority, according to Steve Cunningham, Fox Limousine’s founder.
The transportation authority alleged Fox failed to properly register and license vehicles, operated beyond the scope of its authority and failed to charge uniform tariff rates.
The company was put on probation and effectively fined out of existence, Cunningham said.
Cunningham was charged $15,000 for failing to maintain separate licenses and bank accounts between each of his four businesses, which included Fox Limousine, Fox Charter, Carey Phoenix and a Las Vegas-based transportation management company.
He paid additional taxes of about $40,000 to finalize the separation between Fox and the Phoenix operation. “We had to sell the vehicles to ourselves and paid sales tax on 14 vehicles,” Cunningham explained.
The rules of probation would have required Cunningham to submit monthly financials to the Transportation Authority on all four companies, which would have cost thousands of dollars per month.
“At that point, we elected to voluntarily surrender our limousine license,” said Cunningham, who sold the business to Jim Jimmerson, president of Executive Limousine.
Jimmerson has been expanding his operation since getting the transportation contract for Wynn Las Vegas hotel, which is scheduled to open in April 2005.
The new company is called Executive Fox Limousine.
Cunningham will continue to run Fox Charter, which operates stretch Excursions and minibuses.
-- Neil Weiss