The bill amends existing laws regarding the creation of tax increment financing (TIF) districts in South Dakota. Key changes include the introduction of a "financing plan" that outlines the methods and revenue sources for project costs, and the requirement for a referendum if the estimated project costs exceed fifteen million dollars. The governing body must now ensure that at least fifty percent of the real property within the district is blighted and will contribute to the economic welfare of the state. Additionally, the bill specifies that both municipalities and counties must consent to the creation of a district within their respective jurisdictions.

Further amendments clarify the definitions of "blighted area" and "project costs," and establish new requirements for project plans, including a cost-benefit analysis by an independent accountant. The bill also modifies the criteria for determining the tax increment base and stipulates that the existence of a TIF district must be terminated under certain conditions. Overall, these changes aim to enhance transparency and accountability in the establishment and management of TIF districts, ensuring that they effectively contribute to local economic development.

Statutes affected:
Introduced, 01/22/2026: 11-9-1, 11-9-5, 11-9-8, 11-9-10, 11-9-14, 11-9-15, 11-9-23, 11-9-32, 11-9-46