Bill > SB109

This bill modifies the requirements for creating a tax increment financing (TIF) district, which is a designated geographic area within a municipality or county used to finance development or redevelopment projects. Key changes include defining "Financing plan" as the methods and revenue sources for paying project costs, and expanding the definition of "Governing body" to include common councils of municipalities. The bill reduces the maximum allowable percentage of a political subdivision's total assessed property value that can be included in a TIF district from ten percent to two and a half percent, and increases the required percentage of blighted or economically beneficial property within a district from twenty-five percent to fifty percent. It also mandates that the social or economic benefits of a project must exceed its costs, as determined by an independent analysis, and introduces a requirement for municipal consent when a county creates a district within a municipality, and vice-versa. Furthermore, if the estimated project costs for a new district exceed fifteen million dollars, a special election must be held to approve its establishment, and an independent analysis of the project's costs, benefits, and economic impacts is now required. The bill also clarifies that money from a TIF district's special fund can only be used for that specific district's project costs and that the termination of a district requires payment or provision for all project costs and bonds.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26508