SD SB191

Removes the definition of "grant" from tax increment financing (TIF) district statutes, eliminating the authority for political subdivisions to transfer money or property to outside parties for governmental purposes through TIF districts

Strikes grants from the definition of "project costs," limiting TIF expenditures to costs of public works or improvements within a district

Eliminates the provision allowing discretionary payments and grants for economic development purposes, which previously permitted grants to stimulate "general economic welfare and prosperity of the state"

Prohibits using TIF special fund money to pay grants, restricting disbursements to project costs and tax increment bond obligations only

Removes grants from the list of obligations that must be paid before a TIF district can be dissolved by the governing body