The bill amends South Dakota's tax increment finance law, specifically Section 11-9-23, to lower the cost threshold for redetermining the tax increment base of a district. Under the new provisions, if a municipality adopts an amendment to the original project plan that includes additional project costs, the tax increment base must be redetermined only if these additional costs exceed fifteen percent of the amount approved in the original project plan, down from the previous threshold of thirty-five percent.

Additionally, the bill clarifies that the redetermined tax increment base is only effective if it exceeds the original base determined under the existing law. The new language specifies that the additional project costs must be incurred before the expiration of the period specified in Section 11-9-13, ensuring that municipalities can adjust their project plans without significant financial barriers.

Statutes affected:
Introduced, 02/02/2026: 11-9-23