The bill amends existing laws regarding the creation and management of tax increment financing (TIF) districts in South Dakota. Key changes include the introduction of new definitions such as "financing plan," which outlines the methods and revenue sources for project costs, and "governing body," which specifies the entities responsible for TIF district creation. The bill also modifies the requirements for establishing a TIF district, reducing the maximum assessed value of taxable property allowed from ten percent to five percent of the total assessed value in the political subdivision. Additionally, it mandates that if the proposed tax increment base exceeds one-half percent of the total assessed value, a special election must be held to determine the establishment of the district.

Further amendments include the requirement for a cost-benefit analysis by an independent accountant or economist to assess the project's economic impact, as well as stipulations that no county or municipality can create a district without the consent of the respective governing bodies. The bill also revises the criteria for defining a "blighted area" and clarifies the types of project costs that can be covered under TIF financing. Overall, these changes aim to enhance transparency, accountability, and community involvement in the TIF district creation process.

Statutes affected:
Introduced, 02/04/2026: 11-9-1, 11-9-5, 11-9-8, 11-9-10, 11-9-14, 11-9-15, 11-9-20, 11-9-23, 11-9-32, 11-9-46