The bill amends South Dakota law regarding the allocation of positive tax increments from tax increment financing districts created by municipalities. It specifies that, except as provided in the new section, positive tax increments must be allocated to the political subdivision that created the district for a maximum of twenty years from the year of the district's creation. Additionally, the bill allows counties to withhold an amount from these positive tax increments, which cannot exceed the costs incurred by the county in administering the district.

Furthermore, the bill modifies the responsibilities of the county treasurer or municipal finance officer regarding the deposit of tax increments. It mandates that all remaining tax increments received in a district be deposited into a special fund for that district, after deducting the costs incurred by the county for administration. The bill also allows for the possibility of depositing additional funds into this special fund, subject to appropriations by the governing body, and permits temporary investment of these funds in accordance with existing regulations.

Statutes affected:
Introduced, 01/14/2026: 11-9-25, 11-9-31