Bill > HB1247

This bill amends existing South Dakota law regarding Tax Increment Financing (TIF), a tool used by municipalities to finance redevelopment projects. Specifically, it lowers the threshold at which the "tax increment base" must be redetermined. The tax increment base is the initial assessed value of property within a TIF district, against which future increases in property tax revenue are captured to fund the project. Currently, if a municipality amends a TIF project plan to include additional project costs that could be funded by tax increments, the base must be redetermined if those costs exceed 35% of the original plan and are to be incurred before the project's expiration. This bill changes that threshold, requiring a redetermination if the additional project costs are 15% or less than the amount approved in the original project plan, and these costs are to be incurred before the expiration of the period specified in the law. This means that municipalities will need to re-evaluate their TIF base more frequently when making even smaller additions to project costs.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/27092