Paul Woodhead, 65, of Hesketh Avenue, Bispham, had his licence suspended because his car failed its MOT.
The authority said he also failed to have the car re-inspected so he could have his suspension lifted.
Mr Woodhead pleaded guilty to breaching the stop notice at Preston Magistrates’ Court and was fined £76.
He was also ordered to pay £30 victims’ surcharge, and £186 costs.
Coun Julie Robinson, who is the chairman of the council’s licensing committee, said: “Wyre Council places public safety at the heart of taxi licensing decisions.
“We want to reassure the public that all drivers of Wyre licensed vehicles are checked and scrutinised to an appropriately high standard of professionalism at all times while transporting the general public.”
The case marked the council’s first successful prosecution of a taxi offence using a ‘single justice procedure’ – where minor criminal cases can be decided by magistrates using the defendant having to appear in court.
The stop notice, which is a formal suspension of a vehicle licence because the council isn’t happy with the condition of a taxi, was issued on Friday, March 1.
That was blamed on a “number of MoT failure items which were identified by mechanics”, the council said.
They included worn down rear brake pads which were found to be less than 1.5 millimetres thick.