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SD SB109

Bill

Official Source

Status

Introduced

1/23/2026

Primary Sponsor

Julie Auch

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Reduces the maximum assessed value cap for TIF districts from 10% to 2.5% of total taxable property in a political subdivision
  • Increases the blighted area requirement from 25% to 50% of real property within a proposed district, and requires both blight AND economic development criteria be met (previously either/or)
  • Requires municipalities to obtain county commission approval before creating a TIF district, in addition to existing requirement for counties to obtain municipal consent
  • Mandates a special election for TIF districts with estimated project costs exceeding $15 million, to be held 45-60 days after resolution adoption
  • Requires independent CPA review of project and financing plans, including cost-benefit analysis and estimates for property tax distribution, employment, housing, and economic output impacts

Legislative Description

Modify requirements to create a tax increment financing district.

Elections

Last Action

Taxation Tabled, Passed, YEAS 4, NAYS 0. S.J. 17

2/20/2026

Committee Referrals

Taxation1/27/2026

Full Bill Text

No bill text available