This bill amends South Dakota law regarding the creation of tax increment financing districts by requiring a vote for approval when certain conditions are met. Specifically, it modifies Section 11-9-5 to replace the term "establish" with "create" and introduces a requirement that any resolution adopted for creating a district is subject to a referendum. The bill also specifies that the resolution must describe the district's boundaries, specify a creation date, confirm that the assessed value of the taxable property does not exceed ten percent of the total assessed value in the political subdivision, and assign a name to the district.

Additionally, the bill introduces a new section that mandates a special election if the estimated project costs of a proposed district exceed fifteen million dollars. This election must occur within forty-five to sixty days after the resolution is adopted, unless it coincides with a regular election within a ninety-day period. The special election will follow the same notice and conduct procedures as a regular election in the political subdivision, ensuring that voters have a say in the establishment of significant tax increment financing districts.

Statutes affected:
Introduced, 02/01/2026: 11-9-5