The bill amends Section 11-9-5 of South Dakota law regarding the establishment of tax increment financing districts. It introduces new language that requires the governing body to create a district by adopting a resolution that describes the district's boundaries with sufficient definiteness, establishes a creation date, and includes a finding that the assessed value of taxable property in the district, along with the tax increment base of all existing districts, does not exceed two and one-half percent of the total assessed value of all taxable property in the political subdivision.

Additionally, the bill specifies that the first district created in each political subdivision must be designated as "Tax Increment Financing District Number One, City (or Town, or County) of __________," with subsequent districts assigned consecutive numbers. The amendment effectively lowers the maximum limit on the tax increment base value from ten percent to two and one-half percent, thereby tightening the criteria for establishing new tax increment financing districts.

Statutes affected:
Introduced, 01/29/2026: 11-9-5