Answered by Shaykh Faraz Rabbani
We have 2 Taxis. Both have medallions, which are worth about $90,000 total. They were purchased many years ago for a lot less. We want to know if we have to pay Zakah on the value of the medallions. We drive the taxis ourselves and do not lease them for business.
Walaikum assalam,
In the name of Allah, the inspirer of truth. All praise is to Allah, Most Merciful and Compassionate, and all blessings and peace to our Master Muhammad, his family, companions, and those who follow them.
It is not legally obligatory to pay zakat on the medallions, because they are considered part of the assets one needs to operate in one’s line of work, rather like the tools of a carpenter or the machines in a factory (which there is no zakat on).
And Allah alone gives success.
Wassalam,
Faraz Rabbani.