Sioux Falls City Council passed the first reading of a proposed $3 per day rental car tax at the Sioux Falls Regional Airport, according to a report by Keloland.

The Sioux Falls Development Foundation wants to add a $3 per day tax on rental cars to help fund the development of a business park. The Development Foundation estimates the new tax would bring in close to $1 million a year, a majority paid by visitors to the city, says the report.

Dan Letellier, Sioux Falls Regional Airport’s director, told Keloland that the airport has considered a similar fee to fund upgrades to the car rental area. "If there's already a $3 fee imposed, plus our fee, $6 per day is going to impact people's decision-making," Letellier said.

Sioux Falls car rental companies call the tax discriminatory and regressive, according to the report.

A second reading of the proposed tax will be presented to the city council on Feb. 1. If that passes, Sioux Falls residents would vote on it in April, says the report.

Click here for the full Keloland report.