Sioux Falls, SD (KELO-AM) The proposed $3-a-day tax on rental cars in Sioux Falls is no more. The Sioux Falls Development Foundation on Tuesday asked City Council to stop action on the tax.
Foundation President Slater Barr says they still feel the tax is a good way to help economic development in the growing city, but have withdrawn it due to the concerns of the Sioux Falls Airport Authority. Airport Manager Dan Letilier had expressed concerns that the city taxing rental cars might impact the way the airport makes money.
Just hours before the unexpected Foundation announcement, Sioux Falls Mayor Mike Huether was on KELO Radio's Greg Belfrage show, warning that the rental car tax could lead to lawsuits. Barr says he can't speak for the city, but the Foundation has absolutely no concerns about legal repercusions. He says if the Airport Authority would one day agree, then the Foundation would bring back the tax idea.
City Council had already voted 4-to-1 to move the tax to a final vote, which was expected next Monday evening. The issue would eventually have been decided by city voters.