# South Dakota SB 228: modify provisions for a tax increment financing district. South Dakota SB 228, modify provisions for a tax increment financing district., is a 101st South Dakota Legislature (2026) Senate bill sponsored by Karr, Chris (Republican); status signed, last action 2026-03-12 (Signed by the Governor) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/SD-SB228-2026 - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: South Dakota SB 228 - State: South Dakota - Session: 101st South Dakota Legislature (2026) - Title: modify provisions for a tax increment financing district. - Status: signed - Chamber: Senate - Introduced: 2026-02-04 - Last action: 2026-03-12, Signed by the Governor - Sponsor: Karr, Chris (Republican) - Cosponsors: 5 - Subjects: Ballot Measures, Planning, Zoning and Housing Programs, Tax Increment Financing Districts - Touches household money: no - Roll calls: 4 (116 yes, 2 no in all) - Economic provisions PRIA read: 7 ## Summary No summary available. ## Bill overview: provisions PRIA read - Extra property taxes support school funds: cost, low. County auditors must add a property tax levy for school general and special education funds to offset revenue diverted to tax increment financing districts. The maximum equals the combined statutory school levy rates times the district's value above its tax increment base. These levies are excluded… - Development district boundaries face new limits: cost, low. A tax increment financing district cannot split a whole property unit used for one purpose. Parcels do not count as connected just because a road, waterway, easement, or other listed corridor lies between them. To count as connected across that feature, the parcels must be directly opposite and sep… - Added development costs trigger tax-base review: cost, low. Municipalities generally must recalculate a district's tax increment base when an amended plan adds costs eligible for tax increment financing. The recalculated base applies only when it exceeds the original base. No recalculation is required when added costs are 25% or less of the original approve… - District properties lose assessment phase-in option: cost, low. Counties cannot use the discretionary post-construction assessment formula for property inside a tax increment financing district. Outside those districts, counties can phase in assessed value for up to five tax years after construction. Assessed value cannot fall below its pre-construction level,… - Development grants come with spending limits: mixed, low. District project plans can cover construction, land preparation and assembly, financing, professional services, administration, relocation, and setup costs. Local officials can also approve payments or grants for district creation, plan implementation, or the state's economic development. Grant rec… - Housing barriers count toward development eligibility: mixed, low. An area that blocks housing development can count as blighted, but it must still meet the definition's broader public-welfare criteria. At least 50% of a proposed district's land area must meet either the blight test or the specified economic-development test. Officials must also find that improvem… - Local development districts face stricter approval: mixed, low. A new district's taxable assessed value plus existing districts' tax increment bases cannot exceed a share of local taxable value. The cap is 7.5% in first-class municipalities and 10% in other political subdivisions. Counties need municipal consent by resolution for districts located partly or who… ## Sponsors and cosponsors - Sponsor: Karr, Chris (Republican), Senate - Cosponsor: Andera, Bobbi L. (Republican), House - Cosponsor: Muckey, Erik (Democratic), House - Cosponsor: Perry, Carl (Republican), Senate - Cosponsor: Voita, Mykala (Republican), Senate - Cosponsor: Weisgram, Mike (Republican), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-03-04 | House | Do Pass Amended | pass | 67 | 0 | | | 2026-03-03 | House | Do Pass | pass | 9 | 2 | | | 2026-02-24 | Senate | Do Pass Amended | pass | 33 | 0 | | | 2026-02-20 | Senate | Do Pass Amended | pass | 7 | 0 | | ## Actions (14) - 2026-03-12: Signed by the Governor (Senate) - 2026-03-10: Delivered to the Governor (Senate) - 2026-03-09: Signed by the Speaker (House) - 2026-03-05: Signed by the President (Senate) - 2026-03-04: Do Pass Amended (House) - 2026-03-03: Do Pass (House) - 2026-03-03: Scheduled for hearing (House) - 2026-02-25: First read in House and referred to (House) - 2026-02-24: Do Pass Amended (Senate) - 2026-02-20: Certified uncontested, placed on consent (Senate) - 2026-02-20: Do Pass Amended (Senate) - 2026-02-20: Motion to amend (Senate) - 2026-02-20: Scheduled for hearing (Senate) - 2026-02-04: First read in Senate and referred to (Senate) ## Bill text - Introduced, 2026-02-04: [PDF](https://mylrc.sdlegislature.gov/api/Documents/306314.pdf) ## Related bills - HB 1245: authorize municipalities to establish a local funding mechanism for capital improvement projects. (signed) - HB 1193: modify the provisions for a refund of taxes to disabled veterans and surviving spouses under certain property tax relief programs. (signed) - HB 1148: adopt the respiratory care interstate compact. (signed) - HB 1149: adopt the athletic trainer licensure compact. (signed) - HB 1051: revise property tax levies for school districts and to revise the state aid to general and special education formulas. (signed) - HB 1082: establish parameters for the reimbursement of school districts that provide free or reduced-price meals to students. (signed) ## Sources - [Introduced (PDF)](https://mylrc.sdlegislature.gov/api/Documents/306314.pdf) ## Related - [HB 1245: authorize municipalities to establish a local funding mechanism for capital imp…](https://policyrisk.com/state-bill/SD-HB1245-2026) - [HB 1193: modify the provisions for a refund of taxes to disabled veterans and surviving…](https://policyrisk.com/state-bill/SD-HB1193-2026) - [HB 1148: adopt the respiratory care interstate compact.](https://policyrisk.com/state-bill/SD-HB1148-2026) - [HB 1149: adopt the athletic trainer licensure compact.](https://policyrisk.com/state-bill/SD-HB1149-2026) - [HB 1051: revise property tax levies for school districts and to revise the state aid to…](https://policyrisk.com/state-bill/SD-HB1051-2026) - [HB 1082: establish parameters for the reimbursement of school districts that provide fre…](https://policyrisk.com/state-bill/SD-HB1082-2026) - [South Dakota bills](https://policyrisk.com/states/south-dakota/bills) - [South Dakota state hub](https://policyrisk.com/states/south-dakota) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/SD-SB228-2026 (as of 2026-10-19).