Development foundation proposes rental car tax

Sioux Falls, SD (KELO AM) - The Sioux Falls Development Foundation is looking to raise nearly $1 million dollars a year through a $3 per day tax on rental vehicles.

Slater Barr with the foundation says the tax is similar to what other communities in the region charge for rented vehicles. The money would go to help the foundation pay back the city for developing infrastructure in and around Foundation Park.

Barr calls the tax a necessity for the city's future growth. He says when it comes to bidding for events or projects Sioux Falls is up against bigger competition. "We find ourselves in a position where we're having to compete with communities that, because of their tax base, have a lot more dollars to use to develop property, bring infrastructure to a project." 

The tax will be proposed at the city council meeting on Tuesday, January 19th. If it survives the council residents will then vote on it during the city's municipal and school election in April.