The bill amends South Dakota's tax increment financing district requirements by modifying the criteria for determining a "blighted area." Specifically, it changes the percentage of real property that must be classified as blighted from twenty-five percent to fifty percent. Additionally, it introduces a requirement that at least fifty percent of the real property within the district must contribute to the economic welfare and prosperity of the state through various forms of development. The resolution for creating a district must now include these findings, and it is clarified that the specific parcels meeting these criteria do not need to be identified.

Furthermore, the bill updates the definition of "blighted area" to include various conditions that impair the growth of a political subdivision, such as the presence of deteriorated structures and inadequate street layouts. Notable changes in the language include replacing "Insanitary" with "Unsanitary," and specifying that tax or special assessment delinquencies must exceed the fair value of the land. The bill also removes certain criteria related to diversity of ownership and obsolete platting, streamlining the definition of blight to focus on conditions that directly threaten public health and safety.

Statutes affected:
Introduced, 01/29/2026: 11-9-8, 11-9-10