Bill > HB1319

This bill updates provisions related to tax increment financing (TIF) districts, which are designated areas within a political subdivision (like a city or county) where property tax revenue generated by new development or redevelopment can be used to fund improvements within that district. Key changes include clarifying that TIF districts must be in contiguous geographic areas and cannot be split by easements or waterways unless parcels are directly opposite each other, and that district boundaries cannot divide a property used for a single purpose. The bill also mandates that for any TIF district established after July 1, 2026, an independent fiscal feasibility review must be completed by a qualified third party before a project plan is approved, ensuring the projected tax increment revenue is sufficient to cover project costs and obligations, with the review made public at least fourteen days before the governing body considers establishing the district. Additionally, the bill refines the definition of "project costs" that can be funded by TIF, clarifies that administrative fees must be reasonable and directly related to actual time and expenses, and requires a notice with a final financial statement to be sent to the Department of Revenue upon a district's termination.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26644