Bill > HB1289

This bill modifies the requirements for creating a tax increment financing (TIF) district, which is a designated geographic area within a municipality or county where future increases in property tax revenue are used to fund development or redevelopment projects. Key changes include defining a "financing plan" as the methods and revenue sources for paying project costs, reducing the maximum allowable tax increment base for a new district from ten percent to five percent of the total assessed property value in the political subdivision, and requiring that at least fifty percent of the real property within the district must stimulate economic development, rather than twenty-five percent being blighted. The bill also mandates that if a district's tax increment base exceeds half a percent of the total assessed property value, a special election must be held to approve its creation, and it introduces a requirement for an independent analysis of the project's costs, benefits, and economic impacts. Additionally, it clarifies that counties cannot create districts within municipalities without municipal consent, and municipalities cannot create districts without county commissioner consent, and it adjusts the definition of "blighted area" to exclude municipalities with fewer than fifteen thousand residents from a specific provision related to open space. Finally, the bill limits payments and grants for a district to ten percent of project costs and clarifies how money from the special fund for a district can be disbursed.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/27283