SIOUX FALLS, S.D. (AP) - The Sioux Falls Development Foundation wants voters to decide whether to enact a $3-per-day tax on most rental vehicles to help fund economic development.
The idea came after a year of analysis by six former foundation board leaders. The group reviewed about a dozen potential new revenue sources before settling on the rental car approach, current Chairman Dale Froehlich told the Argus Leader newspaper (https://argusne.ws/1V1zTTT ).
“It’s so common throughout the industry,” he said. “We looked at 25 other towns and of those towns, 21 of them have such a fee.”
A $3 daily tax would generate about $1 million annually in Sioux Falls, according to Froehlich.
Enterprise Rent-A-Car, which is part of a coalition called Curb Auto Rental Taxes, said in a statement that such taxes are “regressive, discriminatory, economically harmful and violate the Constitution.”
The City Council will begin considering the proposal Tuesday. If the council ultimately gives its blessing, a public vote would be held April 12. Collection of the tax could start in July if voters approve. Commercial vehicles, vehicles rented between private parties and vehicles rented for longer than 90 days would be exempt.
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Information from: Argus Leader, https://www.argusleader.com
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