Sioux Falls, SD (KELO-AM) Sioux Falls City Council passed the first reading of a proposed three dollar per day tax on all rental cars by a vote of 4 to 1.
The Sioux Falls Development Foundation's Dale Froelich told Council that money from the tax would, among other benefits, help more rapidly develop Foundation Park, the mega-business park on the city's northside.
Froelich said Omaha and other cities are using a rental car tax to have Sioux Falls citizens help their development, so it's only fair that their citizens help Sioux Falls in the same way.
A second reading will take place on Monday, February 1st. If that passes residents would approve or deny the ordinance during April's city and schools election.
During the public input portion of the meeting several residents expressed strong opposition to the measure. Airport director Dan Letellier said they've been considering a similar fee for upgrades to the car rental area and a possible parking garage, meaning the fees could start piling up. "If there's already a three dollar fee imposed, plus our fee, six dollars per day is going to impact people's decision making." Adding that if options like Uber become available people may not rent a car to get around.
Kendall Zoller with Enterprise Rent-A-Car said it's misguided to think that only out-of-towners are renting cars in Sioux Falls. She said Enterprise's two neighborhood locations account for over 100,000 rental days annually, with almost all of that business coming from local residents. "Dealership rentals, your car is broken and you need a replacement. Body shop replacement, your insurance company is going to provide you a rental car because someone has hit you." She said those numbers also include businesses that may rent a car for an employee to got to a meeting, because it's cheaper than paying mileage.
Council member Rick Kiley told Froelich that he's "dismayed" about the crunch Council is in now, to decide a tax issue in time for an April vote, when this proposal could have been brought months ago.