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SD HB1289

Bill

Official Source

Status

Introduced

2/4/2026

Primary Sponsor

Julie Auch

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Reduces the cap on TIF district assessed value from 10% to 5% of the political subdivision's total taxable property value
  • Increases the blighted area requirement from 25% to 50% of the district's real property by area, and requires both blight criteria and economic development criteria be met (changed from "or" to "and")
  • Requires voter approval via special election for proposed TIF districts where the tax increment base exceeds 0.5% of the political subdivision's total assessed property value
  • Mandates municipalities obtain county commission consent before creating a TIF district, in addition to existing requirement for counties to obtain municipal consent
  • Requires independent cost-benefit analysis by a certified public accountant or economist before district creation, including estimates for property tax distribution changes, employment, housing, and economic output impacts

Legislative Description

Modify requirements to create a tax increment financing district.

Planning, Zoning and Housing Programs

Last Action

Taxation Tabled, Passed, YEAS 12, NAYS 0.

2/17/2026

Committee Referrals

Taxation2/4/2026

Full Bill Text

No bill text available