South DakotaLocal officials review finances before approving future tax district plans
For districts established after July 1, 2026, local officials must get an independent financial review before approving a project plan, with the review public at least 14 days before district approval is considered.
What it does
For districts established after July 1, 2026, local officials must obtain an independent financial review before approving a project plan. The review must be public at least 14 days before officials consider creating the district.
A county may create a tax increment financing district inside a municipality only if the municipality's governing body agrees by resolution.
Argument forReviewing projected revenue, costs, timing, and risks could help officials and the public judge whether a district plan is financially workable.
Argument againstThe required independent review and 14-day public wait could delay local approval of a district's project plan.
More detail
A governing body may not approve a project plan for a district established after July 1, 2026, without an independent financial review. The rule applies to South Dakota tax increment financing districts established after July 1, 2026. The reviewer must be independent of developers and private parties receiving financial help under the plan. The review is advisory, does not guarantee completion or revenue, and does not replace the governing body's own evaluation. The review must be complete and available to the governing body and public at least 14 days before the governing body considers the resolution establishing the district.
A county may not create a district within a municipality unless the municipality's governing body consents by resolution. This applies when a county seeks to create a district located wholly or partly within a municipality. The consent must be given by resolution of the municipality's governing body.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 12Signed by the Governor Larry Rhoden on 2026-03-12 S.J. 541Became Law
- Mar 10Delivered to the Governor on 2026-03-10 S.J. 510To Governor
- Mar 9Signed by the Speaker H.J. 543Passed House
- Mar 5Signed by the President S.J. 485Passed Senate
- Mar 4House of Representatives Do Pass Amended , Passed, YEAS 67, NAYS 0 H.J. 515
- Vote recorded Do Pass Amended. Result: pass.Lower
- Mar 3Taxation Do Pass , Passed, YEAS 9, NAYS 2 H.J. 11Minor
- Vote recorded Do Pass. Result: pass.Lower
- Mar 3Scheduled for hearing
- Feb 25First read in House and referred to House Taxation H.J. 445Minor
- Feb 24Senate Do Pass Amended , Passed, YEAS 33, NAYS 0 S.J. 386
- Vote recorded Do Pass Amended. Result: pass.Upper
- Feb 20Certified uncontested, placed on consent , Passed, S.J. 17
- Vote recorded Do Pass Amended. Result: pass.Upper
- Feb 20Taxation Do Pass Amended , Passed, YEAS 7, NAYS 0 S.J. 17
- Feb 20Taxation Motion to amend , Passed, S.J. 17 Amendment 228AMajor
- Feb 20Scheduled for hearing
- Feb 4First read in Senate and referred to Senate Taxation S.J. 180Introduced
Taxes & BudgetGovernment & Ethics