This bill amends existing legislation regarding tax increment financing districts in South Dakota. It introduces new definitions, including "financing plan," which outlines the methods and revenue sources for funding project costs, and specifies the role of the "governing body" in this context. Additionally, it modifies the requirements for the resolution needed to establish a tax increment financing district, emphasizing that the governing body must now include findings related to the social or economic benefits of the project exceeding its costs to property owners and political subdivisions.

Furthermore, the bill mandates that the governing body submit the project and financing plans to an independent third party for a comprehensive review. This review will include a cost-benefit analysis, an estimate of changes in property tax distribution over time, and projections regarding the project's impact on employment, housing, and economic output. These changes aim to enhance transparency and ensure that the establishment of tax increment financing districts is beneficial to the community and its stakeholders.

Statutes affected:
Introduced, 01/29/2026: 11-9-1, 11-9-8