Bill > SB228

This bill modifies provisions related to tax increment financing (TIF) districts, which are designated geographic areas within a political subdivision (like a city or county) where future increases in property tax revenue are used to fund development or redevelopment projects. Key changes include allowing county commissioners to adopt discretionary formulas for assessed property values for up to five years after construction, with specific rules on how these formulas apply and are not applied within TIF districts. The bill also clarifies the definition of a "contiguous geographic area" for TIF districts, alters the percentage limits for the total assessed value of taxable property within a district relative to the political subdivision's total assessed value, and requires that districts established after July 1, 2026, generally cannot overlap with existing districts unless authorized by a joint resolution. Furthermore, it increases the required percentage of blighted or economically beneficial property within a district from twenty-five to fifty percent, mandates that counties obtain municipal consent before creating a district within a municipality, and revises the definition of "blighted area" and "project costs" (expenses related to TIF projects). The bill also adjusts the threshold for amending project plans and requires an independent fiscal feasibility review by a registered municipal advisor, certified public accountant, or other qualified third party for any district established after July 1, 2026, ensuring this review is completed and publicly available before the district is established. Finally, it specifies the content of this fiscal feasibility review, stating it is advisory and must be completed at least fourteen days before the governing body considers establishing the district.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/27291