require the review of a financing plan to establish a tax increment financing district.

26.791.12 101st Legislative Session 203

2026 South Dakota Legislature
Senate Bill 203

Introduced by: Senator Marty

Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to require the review of a financing plan to establish a tax increment 1
financing district. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 11-9-1 be AMENDED: 4
11-9-1. Terms used in this chapter mean: 5
(1) "Department," the Department of Revenue; 6
(2) "District," a tax increment financing district; 7
(3) "Financing plan," the intended methods and revenue sources by which the political 8
subdivision is to pay for the project costs; 9
(4) "Governing body," the board of trustees, the board of commissioners, the board of 10
county commissioners, or the common council of a municipality; 11
(4)(5) "Grant," the transfer of money or property to a transferee for a governmental 12
purpose that is not a related party to or an agent of the political subdivision; 13
(5)(6) "Planning commission," a planning commission created under chapters 11-2 or 11-14
6, a planning committee of a governing body of a political subdivision that does 15
not have a planning commission, or the governing body of a political subdivision 16
that does not have a planning commission or planning committee; 17
(6)(7) "Political subdivision," a municipality, as defined in § 11-6-1, or county of this 18
state; 19
(7)(8) "Project plan," the properly approved plan for the development or redevelopment 20
of a tax increment financing district including and all properly approved 21
amendments to the plan; 22
(8)(9) "Tax increment financing district," a contiguous geographic area within a political 23
subdivision defined and created by resolution of the governing body; 24
(9)(10) "Taxable property," all real and personal taxable property located in a tax 25
increment financing district; and 26
26.791.12 2 203
Underscores indicate new language.
Overstrikes indicate deleted language.
(10)11 "Tax increment valuation," the total value of the tax increment financing district 1
minus the tax increment base as determined pursuant to § 11-9-19. 2
Section 2. That § 11-9-8 be AMENDED: 3
11-9-8. The resolution required by § 11-9-5 shall must contain the following 4
findings: 5
(1) Not less than twenty-five percent, by area, of the real property within the district 6
is a blighted area or not less than fifty percent, by area, of the real property within 7
the district will stimulate and develop the general economic welfare and prosperity 8
of the state through the promotion and advancement of industrial, commercial, 9
manufacturing, agricultural, or natural resources development; and 10
(2) The improvement of the area is likely to significantly enhance the value of 11
substantially all other real property in the district; and 12
(3) The review required by section 3 of this Act indicates that the social or economic 13
benefits of the project exceed its costs to property owners and political subdivisions 14
authorized to impose a property tax within the boundaries of the district. 15
It is not necessary to identify the specific parcels meeting the criteria. No county 16
may create a district located, in whole or in part, within a municipality, unless the 17
governing body of the municipality has consented to creation of a district by resolution. 18
Section 3. That a NEW SECTION be added to chapter 11-9: 19
The governing body shall submit the project plan and financing plan for the district 20
to an independent, third party to provide: 21
(1) A cost-benefit analysis of the project; 22
(2) An estimate for the expected change in the distribution of property taxes over time 23
resulting from the project; and 24
(3) An estimate for the expected effects on employment, housing, and economic 25
output resulting from the project. 26