Title 11 — PLANNING, ZONING AND HOUSING PROGRAMS

11-9-22 Presumption as to property recently acquired or leased by municipality. 11-9-23 Redetermination of tax increment base when project costs increased by amendment of plan. 11-9-24 Annual notice by department of assessed value of real property and tax increment base--Change i…

Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2018, ch 70 , § 22; SL 2020, ch 39 , § 14; SL 2020, ch 43 , § 1; SL 2021, ch 44 , § 44; SL 2022, ch 29 , § 6; SL 2024, ch 45 , § 10.

Terms used in this chapter mean: (1) "Department," the Department of Revenue; (2) "District," a tax increment financing district in a contiguous geographic area within a political subdivision, which is defined and created by resolution of the governing body, provided that parcels…

For the purposes of this chapter, the term "blighted area" means an area that substantially impairs or arrests the sound growth of the political subdivision, inhibits housing development, constitutes an economic or social liability, or is a danger in its present condition and use…

Source: SL 1978, ch 91 , § 2 (3); SL 2024, ch 45 , § 22.

On the creation of a district or adoption of any amendment subject to § 11-9-23 , the tax increment base of the district shall be determined as provided in §§ 11-9-20 to 11-9-25 , inclusive. Source: SL 1978, ch 91 , § 10; SL 2018, ch 70 , § 15.

The planning commission shall adopt a project plan for each district and submit the plan to the governing body. The plan shall include: (1) The kind, number, and location of all proposed public works or improvements within the district; (2) An economic feasibility study; (3) A de…

For the purposes of this chapter, the term "project costs" are any expenditures made or estimated to be made, or monetary obligations incurred or estimated to be incurred, by a political subdivision that are listed in a project plan as grants or costs of public works or improveme…

For the purposes of this chapter, the term "project costs" means: (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of…

The project plan for each district must contain: (1) A map showing the existing uses and conditions of real property in the district; (2) A map showing the proposed improvements and uses; (3) A map showing the proposed changes of zoning ordinances; (4) A statement listing changes…

The governing body shall approve a project plan for each district. The approval by resolution must contain findings that the plan is feasible and in conformity with the master plan, if any, of the political subdivision. Source: SL 1978, ch 91 , § 7 (6); SL 2018, ch 70 , § 20; SL …

For any district established after July 1, 2026, a governing body may not approve a project plan unless an independent fiscal feasibility review has been completed and submitted to all political subdivisions. The review must be conducted by a third-party who is a municipal adviso…

A fiscal feasibility review required pursuant to § 11-9-17.1 : (1) Must contain: (a) A description of the project plan, proposed district boundaries, and estimated project costs; (b) An analysis of the tax increment base and the projected tax increment valuation for the anticipat…

The planning commission may at any time adopt an amendment to a project plan which shall be subject to approval by the governing body in the same manner as an initial project plan. Source: SL 1978, ch 91 , § 8.

A political subdivision may: (1) Create one or more districts and define each district's boundaries; (2) Prepare project plans, approve the plans, and implement the provisions and purposes of the plans, including the acquisition by purchase or condemnation of real and personal pr…

Upon receiving an application by the county auditor or municipal finance officer, as applicable, on a form prescribed by the department, the department must determine the aggregate assessed value of the taxable property in the district, which aggregate assessed value, on certific…

Aggregate assessed value for district not in compliance with §

The director of equalization shall indicate on the assessment roll required by §§ 10-3-28 and 10-6-153 each parcel of real property located within a district, including the name of the district the parcel is located in. Source: SL 1978, ch 91 , § 14; SL 2018, ch 70 , § 23; SL 202…

There is a rebuttable presumption that any property within a district acquired or leased as lessee by a municipality, or any agency or instrumentality of the municipality, within one year immediately preceding the date of the creation of the district was acquired or leased in con…

Except as provided in this section, if the municipality adopts an amendment to the original project plan for any district that includes additional project costs for which tax increments may be received by the municipality, the tax increment base for the district must be redetermi…

The department shall annually give notice to the auditor or finance officer of all governmental entities having the power to levy taxes on real property within a district of both the assessed value of the real property and the assessed value of the tax increment base. The notice …

Positive tax increments of a district shall be allocated to the municipality that created the district for each year from the date when the district is created until the municipality has been reimbursed for expenditures previously made, has paid all monetary obligations, and has …

For purposes of this chapter, the term, tax increment, is that amount obtained by multiplying the total county, municipal, school, and other local real property taxes levied on all taxable real property within a district in any year by a fraction having a numerator equal to that …

With respect to the municipality, the county, school districts and any other local governmental body having the power to levy taxes on real property located within a district, the calculation of the assessed value of taxable real property in a district, for purposes of computing …

Notwithstanding any other provision of law, each officer charged by law to collect and pay over or retain local real property taxes shall first, on the next settlement date provided by law, pay over to the county treasurer or municipal finance officer, as applicable, out of all t…

11-9-31 Tax increments deposited in special fund--Appropriations to fund--Investment of moneys in fund. 11-9-32 Permissible uses of special fund. 11-9-33 Bonds authorized for payment of project costs. 11-9-34 Bonds or contracts authorized by resolution. 11-9-35 Maximum amount of …

The planning commission shall hold a hearing at which interested parties are afforded a reasonable opportunity to express views on the proposed creation of a district and the district's proposed boundaries. The planning commission shall publish notice of the hearing at least once…

Payment of project costs may be made by any of the following methods or by any combination of methods: (1) Payment by the political subdivision from the special fund of the district; (2) Payment out of the funds of the political subdivision; (3) Payment out of the proceeds of the…

The county treasurer or municipal finance officer, as applicable, shall deposit all tax increments received in a district into a special fund for the district. The county treasurer or municipal finance officer, as applicable, may deposit additional moneys into the fund pursuant t…

Moneys may be paid out of the special fund for the district created under § 11-9-31 only to pay project costs or grants of the district, to reimburse the political subdivision for the payment of project costs or grants of the district, or to satisfy claims of holders of tax incre…

For the purpose of paying project costs, the governing body may issue tax increment bonds payable out of positive tax increments. Source: SL 1978, ch 91 , § 21; SL 2011, ch 73 , § 10; SL 2018, ch 70 , § 34.

Tax increment bonds, contracts, or agreements shall be authorized by resolution of the governing body without a requirement of voter approval. Source: SL 1978, ch 91 , § 22; SL 2011, ch 73 , § 11; SL 2018, ch 70 , § 35.

Tax increment bonds may not be issued in an amount exceeding the aggregate project costs. The bonds may not mature later than twenty years from the date the district was created. The bonds may contain a provision authorizing the redemption of the bonds, in whole or in part, at st…

Tax increment bonds are payable only out of the special fund created under §

The governing body shall irrevocably pledge all or a stated percentage of the special fund created under § 11-9-31 to the payment of the bonds. The special fund or designated part may be used only for the payment of the bonds and interest until the bonds have been fully paid, and…

Each bond issued pursuant to this chapter and all interest coupons related to the bonds are negotiable instruments. Bonds issued are not general obligation bonds and are payable only from the tax increment of the project as provided in this chapter. Source: SL 1978, ch 91 , § 21;…

To increase the security and marketability of its tax increment bonds, a political subdivision may do either or both of the following: (1) Create a lien for the benefit of the bondholders upon any public improvements or public works financed by the bonds or the revenues from the …

The State of South Dakota does hereby pledge to and agree with the holders of any bonds issued under this chapter that the state will not alter the rights vested in the bondholders until such bonds, together with the interest thereon, with interest on any unpaid installments of i…

The planning commission shall designate the boundaries of a district that the planning commission recommends be created. The planning commission shall submit the recommendation to the governing body. The boundaries of a district may not split a whole unit of property that is bein…

Tax increment bonds may be sold at public or private sale at a price that the governing body deems in the best interests of the political subdivision. Source: SL 1978, ch 91 , § 23; SL 1983, ch 37 , § 12; SL 2011, ch 73 , § 18; SL 2018, ch 70 , § 41; SL 2024, ch 45 , § 18.

The exercise of the power of eminent domain in connection with a district shall proceed in the same manner as a condemnation proceeding is conducted by the Department of Transportation pursuant to the provisions of chapter 31-19 . Source: SL 1978, ch 91 , § 29; SL 2018, ch 70 , §…

No tax increments shall be used for the construction of residential structures. Source: SL 1978, ch 91 , § 29A; SL 1985, ch 102 .

As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall furnish a performance bond, with such surety and in such form and amount as the governing body may approve or make such other guaranty as the governing …

If the governing body finds that the redevelopment is not being carried out or maintained in accordance with the contract terms and conditions, or there is a failure to perform the work with diligence, or to assume the work's completion on time, the governing body shall notify th…

After all project costs and all tax increment bonds of the district have been paid or provided for, subject to any agreement with bondholders, any moneys remaining in the fund must be paid to each taxing district in the amount belonging to each respectively, with due regard for w…

Repealed by SL 1982, ch 16 , § 14 11-9-48 District reports published on department website.

The department may publish annually on its website a report of each tax increment financing district in the state. Any political subdivision that has created a tax increment financing district shall provide the department with any information requested to compile the report. Sour…

To create a district, the governing body must adopt a resolution that: (1) Describes the boundaries of the district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included; (2) Creates the district on a given date; (3) Includes a fin…

Unless otherwise authorized by a joint resolution among the affected political subdivisions, a district established after July 1, 2026, may not overlap with any other existing district. Source: SL 1978, ch 91 , § 26; SL 2018, ch 70 , § 12; SL 2026, ch 58 , § 6.

Source: SL 1978, ch 91 , § 7 (4) (c); SL 1991, ch 115 , § 1; SL 2018, ch 70 , § 13; SL 2024, ch 45 , § 21.