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REDMOND, Ore. (KTVZ) – The Redmond City Council voted in full to implement a 12.5% rental car tax, scheduled to go into effect March 1, to fill funding gaps for needed transportation projects, including the East Side Arterial Project. It was unanimously approved.
The city’s recent five-year Transportation Capital Improvements Program identified $64 million worth of projects, with existing resources estimated at $37 million, leaving a 42 percent funding gap.
A new rental car tax of 12.5 percent of total rental fees citywide, including the Redmond Airport, is aimed at getting tourists visiting the area to fund street needs, staff said. At least three of his other jurisdictions in Oregon (Medford County, Lane County and Multnomah County) charge fees of 12 to 17 percent of the gross rental amount. It is expected to generate approximately $2 million in revenue.
As an example, a three-day midsize car rental in Redmond will cost approximately $51 per day, or $154 before other taxes and fees. The 12.5% rental car tax increases that cost by about $19, or $6 per day.
The city exempted some rentals from the new fees, particularly RVs and rental trucks.
Before Tuesday night’s vote, Councilors Tobias Colvin and Kat Zwicker were among those surprised that the city wasn’t already collecting taxes to help visitors pay for necessities on the streets. was.
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