Bill > HB1074

This bill amends existing South Dakota law regarding tax increment financing (TIF) districts, which are areas where property tax revenue increases are used to fund development projects. Specifically, it allows a county to withhold an amount from the "positive tax increments" – the increase in property taxes generated within a TIF district – that is no more than the cost the county incurred in administering that district, even if the district was created by a municipality. This change is added to the existing provision that states these tax increments are generally allocated to the "political subdivision" (which can be a municipality or a county) that created the district until they are reimbursed for expenditures, have paid obligations, and retired bonds, with a maximum allocation period of twenty years. The bill also clarifies that after deducting the county's administrative costs, any remaining tax increments are to be deposited into a special fund for the district.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26367