South Dakota 2026 Regular Session Status: Enacted Bipartisan · 5 R · 1 D cosponsors

SB 228 — modify provisions for a tax increment financing district.

Last action — Signed by the Governor on 2026-03-12 S.J. 541

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 04, 2026. Enacted.

Signed by Governor Larry Rhoden (Republican) on March 12, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 98% · high confidence

  • Enacted

    Current position in the legislative process.

  • 6 sponsors

    6 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (5 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

342 added · 341 removed

342 line(s) added, 341 removed.

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26.992.21 101st Legislative Session 228 South Dakota Legislature Senate Bill 228 SENATE TAXATION ENGROSSED Introduced by:
26.992.22 101st Legislative Session 228 South Dakota Legislature Senate Bill 228 ENROLLED A N ACT ENTITLED An Act to modify provisions for a tax increment financing district.
Senator Karr An Act to modify provisions for a tax increment financing district.
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH D AKOTA :
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF SOUTH D AKOTA :
Any Following the construction of any structure classified pursuant to this section, must, following construction, be valued the valuation of the structure for taxation purposes must occur in the usual manner.
Following the construction of any structure classified pursuant to this section, the valuation of the structure for taxation purposes must occur in the usual manner.
The board of county commissioners of the county in which the structure is located, may adopt a discretionary formula for assessed value to be used for tax purposes.
The board of county commissioners of the county in which the structure is located may adopt a discretionary formula for assessed value to be used for tax purposes.
Any formula adopted must be equally applied to specifically classified properties pursuant to this section may not be used for any property within a tax increment finance district.
Any formula adopted pursuant to this section may not be used for any property within a tax increment finance district.
The board of county commissioners of the county in which the structure is located may, if requested by the owner of the structure, fully assess the structure without application of the formula.
The board may, if requested by the owner of the structure, fully assess the structure without application of the formula.
In waiving the formula for the structure of one owner, the board of county commissioners is not prohibited from applying the formula for subsequent new structures.
In waiving the formula for the structure of one owner, the board is not prohibited from applying the formula for subsequent new structures.
Overstrikes indicate deleted language.
Following the five-year period under this section, the property must be assessed at the same percentage as all other property for tax purposes, except as otherwise provided in § 10-6-137.1.
26.992.21 2 228 Following the five-year period under this section, the property must be assessed at the same percentage as all other property for tax purposes, except as otherwise provided in § 10-6-137.1.
26.992.22 2 228 Any of the following types of real property may be specifically classified for the purpose of taxation pursuant to this section:
Any of the following types of real property may be specifically classified for the purpose of taxation pursuant to this section:
(1) Any new industrial structure, or any addition, renovation, or reconstruction to an existing structure, if the new structure, addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;
(1) Any new industrial or commercial structure, or any addition, renovation, or reconstruction to an existing structure, located within a designated urban renewal area as defined in § 11-8-4, if the new structure, addition, renovation, or reconstruction has a full and true value of thirty thousand dollars or more;
(2) Any new industrial structure, including a power generation facility, or an addition to an existing facility, if the new facility or addition has a full and true value of thirty thousand dollars or more;
(2) Any new industrial structure, including a power generation facility, or an addition to an existing structure facility, if the new structure facility or addition has a full and true value of thirty thousand dollars or more;
(7) Any new residential structure, or addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to § 10-6-141, if the new structure, addition, or renovation has a full and true value of five thousand dollars or more.
(7) Any new residential structure, or addition to or renovation of an existing structure, located within a redevelopment neighborhood established pursuant to § 10-6-141, if the new structure, addition, or renovation has a full and true value of five thousand dollars or more, provided the structure is located in an area defined and designated as a redevelopment neighborhood based on conditions set forth in § 11- 7-2 or 11-7-3;
The structure must be, provided the structure is located in an area defined and designated as a redevelopment neighborhood based on conditions provided set forth in § 11-7-2 or 11-7-3;
or (8) Any commercial, industrial, or nonresidential agricultural property that increases more than ten thousand dollars in full and true value, as a result of reconstruction or renovation of the structure.
or Overstrikes indicate deleted language.
26.992.21 3 228 (8) Any commercial, industrial, or nonresidential agricultural property that increases more than ten thousand dollars in full and true value, as a result of reconstruction or renovation of the structure.
10-12-44.
SB228 ENROLLED 26.992.22 3 228 10-12-44.
(1) For tax increment financing districts created pursuant to chapter 11-9, the county auditor shall impose an additional tax levy, for an amount not to exceed an amount equal to the sum of the levies in §§ 10-12-42 and 13-37-16 multiplied by the tax increment value, as defined in § 11-9-1 total value of the tax increment financing district less the tax increment base as determined pursuant to § 11-9-19;
(1) For tax increment financing districts created pursuant to chapter 11-9, the county auditor shall impose an additional tax levy, for an amount not to exceed an amount equal to the sum of the levies in §§ 10-12-42 and 13-37-16 multiplied by the total value of the tax increment financing district less the tax increment base as determined pursuant to § 11-9-19;
The levies in this section are not subject to the referendum provision of § 10-12- 43 and these levies must maintain the same proportion to each other, as represented in the mathematical relationship at the maximum levies pursuant to § 10-12-42.
The levies in this section are not subject to the referendum provision of § 10-12- and these levies must maintain the same proportion to each other, as represented in the mathematical relationship at the maximum levies pursuant to § 10-12-42.
and Overstrikes indicate deleted language.
and (b) Located directly opposite one another;
26.992.21 4 228 (b) Located directly opposite one another;
(3) "Governing body," a board of commissioners, board of trustees, common council, or other authoritative body by which a political subdivision is controlled;
(3) "Governing body," the board of trustees, the board of commissioners, the board of county commissioners, or the common council of a municipality a board of commissioners, board of trustees, common council, or other authoritative body by which a political subdivision is controlled;
(5) "Planning commission," a planning commission created under chapters chapter 11- 2 or 11-6, a planning committee of a governing body of a political subdivision that does not have a planning commission, or the governing body of a political subdivision that does not have a planning commission or planning committee;
SB228 ENROLLED 26.992.22 4 228 (5) "Planning commission," a planning commission created under chapter 11-2 or 11- 6, a planning committee of a political subdivision that does not have a planning commission, or the governing body of a political subdivision that does not have a planning commission or planning committee;
(7) "Project plan," the properly an approved plan for the development or redevelopment of a tax increment financing district including and all properly approved amendments to the plan;
(7) "Project plan," an approved plan for the development or redevelopment of a district and all approved amendments to the plan;
(8) "Tax increment financing district," a contiguous geographic area within a political subdivision defined and created by resolution of the governing body;
(8) "Taxable property," all real and personal taxable property located in a district;
(9) "Taxable property," all real and personal taxable property located in a tax increment financing district;
and (9) "Tax increment valuation," the total value of the district minus the tax increment base as determined pursuant to § 11-9-19.
and (10)(9) "Tax increment valuation," the total value of the tax increment financing district minus the tax increment base as determined pursuant to § 11-9-19.
To establish create a district, the governing body must adopt a resolution that:
To create a district, the governing body must adopt a resolution that:
(1) Describes the boundaries of a the district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included.
(1) Describes the boundaries of the district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included;
The boundaries may not split a whole unit of property that is being used for a single purpose;
(2) Creates the district on a given date;
Overstrikes indicate deleted language.
(3) Includes a finding that the assessed value of the taxable property in the district plus the tax increment base of all other existing districts does not exceed:
26.992.21 5 228 (2) Creates the district on a given date;
(3) Includes a finding that the assessed value of the taxable property in the district plus the tax increment base of all other existing districts does not exceed ten:
and (5) Demonstrates that the district has been reviewed by all affected taxing districts at a public meeting held pursuant to chapter 1-25, provided that the affected taxing districts may provide input but do not have authority to approve or reject the creation of the district.
and SB228 ENROLLED 26.992.22 5 228 (5) Demonstrates that the district has been reviewed by all affected taxing districts at a public meeting held pursuant to chapter 1-25, provided that the affected taxing districts may provide input but do not have authority to approve or reject the creation of the district.
Subject to any agreement with bondholders, a district may overlap with one or more existing districts if the boundaries of the districts are not identical.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.
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.
The resolution required by § 11-9-5 shall must contain the following findings:
The resolution required by § 11-9-5 must contain the following findings:
(1) Not less than twenty-five fifty percent, by area, of the real property within the district is a blighted area or not less than fifty percent, by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources development;
(1) Not less than fifty percent, by area, of the real property within the district is a blighted area or not less than fifty percent, by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources development;
Overstrikes indicate deleted language.
It is not necessary to identify the specific parcels meeting the criteria.
26.992.21 6 228 It is not necessary to identify the specific parcels meeting the criteria.
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No county may create a district located, in whole or in part, within a municipality, unless the governing body of the municipality has consented to creation of a district by resolution.
(2) A predominance of defective or inadequate street layouts;
SB228 ENROLLED 26.992.22 6 228 (2) A predominance of defective or inadequate street layouts;
(4) Insanitary Unsanitary or unsafe conditions;
(4) Unsanitary or unsafe conditions;
(5) The deterioration of site or other improvements land or structures affixed to the land;
(5) The deterioration of land or structures affixed to the land;
(6) A diversity of ownership, tax, Tax or special assessment delinquency delinquencies exceeding the fair value of the land;
(6) Tax or special assessment delinquencies exceeding the fair value of the land;
(8) The existence of conditions which that endanger life or property by fire and other causes;
(8) The existence of conditions that endanger life or property by fire and other causes;
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, which are listed in a project plan Overstrikes indicate deleted language.
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, which are listed in a project plan as grants or costs of public works or improvements within a district.
26.992.21 7 228 as grants or costs of public works or improvements within a district, plus any incidental costs diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the political subdivision in connection with the implementation of the plan.
(3) Real property assembly costs, including the actual cost of the acquisition by a political subdivision of real or personal property within a district, less any proceeds to be received by the political subdivision from the sale, lease, or other disposition of property pursuant to a project plan;
(3) Real property assembly costs, including the actual cost of the acquisition by a political subdivision of real or personal property within a district, less any proceeds SB228 ENROLLED 26.992.22 7 228 to be received by the political subdivision from the sale, lease, or other disposition of property pursuant to a project plan;
(4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services;
(4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal services;
and Overstrikes indicate deleted language.
(8) Payments and grants made, at the discretion of the governing body, that are found to be necessary or convenient to the creation of a district, the implementation of project plans, or to stimulate and develop the general economic welfare and prosperity of the state, except:
26.992.21 8 228 (8) Payments and grants made, at the discretion of the governing body, that are found to be necessary or convenient to the creation of a district, the implementation of project plans, or to stimulate and develop the general economic welfare and prosperity of the state.
No, except:
If 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 shall must be redetermined pursuant to § 11-9-20.
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 redetermined pursuant to § 11-9-20.
The provisions of this section do not apply if the additional project costs are thirty- five twenty-five percent or less than the amount approved in the original project plan and the additional project costs will be incurred before the expiration of the period specified in § 11-9-13.
The provisions of this section do not apply if the additional project costs are twenty- five percent or less than the amount approved in the original project plan and the SB228 ENROLLED 26.992.22 8 228 additional project costs will be incurred before the expiration of the period specified in § 11-9-13.
Moneys may only 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 increment bonds issued for the district.
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 increment bonds issued for the district.
The existence of a district shall terminate must be terminated when:
The district must be terminated when:
Overstrikes indicate deleted language.
(1) Positive tax increments are no longer allocable to the district pursuant to § 11-9- 25;
26.992.21 9 228 (1) Positive tax increments are no longer allocable to a the district under pursuant to § 11-9-25;
or (2) The governing body, by resolution, dissolves the district after payment or provision for payment of all project costs, grants, and all tax increment bonds of the district.
or (2) The governing body, by resolution, dissolves the district, after payment or provision for payment of all project costs, grants, and all tax increment bonds of the district.
The review must be conducted by a third-party who is a municipal advisor registered with the Municipal Securities Rulemaking Board and the United States Securities and Exchange Commission pursuant to section 15B of the Securities Exchange Act of 1934, 15 U.S.C.
The review must be conducted by a third-party who is a municipal advisor registered with the Municipal Securities Rulemaking Board and the United States Securities and Exchange Commission pursuant to section 15B of the Securities Exchange Act of 1934, U.S.C.
The person conducting the review may be compensated for conducting the review but must be independent of any developer, obligated person, and private entity receiving financial assistance or reimbursement under the project plan.
SB228 ENROLLED 26.992.22 9 228 The person conducting the review may be compensated for conducting the review but must be independent of any developer, obligated person, and private entity receiving financial assistance or reimbursement under the project plan.
Overstrikes indicate deleted language.
(b) May not prepare, or have prepared, any development feasibility analysis, financial projection, or valuation study for the developer or any affiliated entity relating to the district;
26.992.21 10 228 (b) May not prepare, or have prepared, any development feasibility analysis, financial projection, or valuation study for the developer or any affiliated entity relating to the district;
(f) A statement identifying material assumptions, limitations, and reliance on information from other third persons;
SB228 ENROLLED 26.992.22 10 228 (f) A statement identifying material assumptions, limitations, and reliance on information from other third persons;
and Overstrikes indicate deleted language.
and (4) Must be completed and made available to the governing body and the public at least fourteen days prior to the governing body's consideration of the resolution establishing the district.
26.992.21 11 228 (4) Must be completed and made available to the governing body and the public at least fourteen days prior to the governing body's consideration of the resolution establishing the district.
SB228 ENROLLED 26.992.22 11 228 An Act to modify provisions for a tax increment financing district.
Underscores indicate new language.
Received at this Executive Office I certify that the attached Act originated in this _____ day of _____________, the:
Overstrikes indicate deleted language.
at ____________M.
Senate as Bill No.
228 By Secretary of the Senate for the Governor The attached Act is hereby approved this ________ day of President of the Senate ______________, A.D., 2026 Attest:
Governor Secretary of the Senate STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State Speaker of the House Filed ____________, 2026 Attest:
at _________ o'clock __M.
Chief Clerk of the House Secretary of State Senate Bill No.
228 By File No.
____ Asst.
Secretary of State Chapter No.
______ SB228 ENROLLED
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Action History

  1. Signed by the Governor on 2026-03-12 S.J. 541

  2. Delivered to the Governor on 2026-03-10 S.J. 510

  3. Signed by the Speaker H.J. 543

  4. Signed by the President S.J. 485

  5. House of Representatives Do Pass Amended , Passed, YEAS 67, NAYS 0 H.J. 515

  6. Taxation Do Pass , Passed, YEAS 9, NAYS 2 H.J. 11

  7. Scheduled for hearing

  8. First read in House and referred to House Taxation H.J. 445

  9. Senate Do Pass Amended , Passed, YEAS 33, NAYS 0 S.J. 386

  10. Certified uncontested, placed on consent , Passed, S.J. 17

  11. Taxation Do Pass Amended , Passed, YEAS 7, NAYS 0 S.J. 17

  12. Taxation Motion to amend , Passed, S.J. 17 Amendment 228A

  13. Scheduled for hearing

  14. First read in Senate and referred to Senate Taxation S.J. 180

Sponsors

Sponsorship breakdown

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6 sponsors · 0 co-sponsors · 99 not signed on · 2 voted No

Sponsors (6)

Co-sponsors (0)

None.

Not signed on (99)

99 members have not signed on to this bill.

Show all 99 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do Pass Amended

Passed 67 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 60003
Democratic 5000
Unaffiliated 2000
Total 67003
% of votes cast 96%0%0%4%
How each member voted (70)
Member Party Vote
Kolbeck (Jack) — Yea
Van Diepen — Yea
Eric Emery Democratic Yea
Erik Muckey Democratic Yea
Erin Healy Democratic Yea
Kadyn Wittman Democratic Yea
Nicole Uhre-Balk Democratic Yea
Aaron Aylward Republican Yea
Al Novstrup Republican Yea
Amber Arlint Republican Yea
Bethany Soye Republican Not Voting
Bobbi Andera Republican Yea
Brandei Schaefbauer Republican Yea
Brian Mulder Republican Yea
Chris Kassin Republican Yea
Curt Massie Republican Yea
David Kull Republican Yea
Drew Peterson Republican Yea
Dylan Jordan Republican Yea
Greg Jamison Republican Yea
Heather Baxter Republican Yea
Jana Hunt Republican Yea
Jeff Bathke Republican Not Voting
Jessica Bahmuller Republican Yea
Jim Halverson Republican Yea
John Hughes Republican Yea
John Shubeck Republican Yea
John Sjaarda Republican Yea
Jon Hansen Republican Yea
Josephine Garcia Republican Yea
Julie Auch Republican Yea
Kaley Nolz Republican Yea
Karla Lems Republican Yea
Kathy Rice Republican Yea
Kent Roe Republican Yea
Keri Weems Republican Yea
Lana Greenfield Republican Yea
Leslie Heinemann Republican Yea
Liz May Republican Yea
Logan Manhart Republican Yea
Marty Overweg Republican Yea
Mary Fitzgerald Republican Yea
Matt Roby Republican Yea
Mellissa Heermann Republican Yea
Mike Derby Republican Yea
Mike Stevens Republican Yea
Mike Weisgram Republican Yea
Nick Fosness Republican Yea
Peri Pourier Republican Yea
Phil Jensen Republican Yea
Rebecca Reimer Republican Yea
Roger DeGroot Republican Yea
Scott Moore Republican Yea
Scott Odenbach Republican Yea
Spencer Gosch Republican Yea
Steve Duffy Republican Yea
Taylor Rehfeldt Republican Yea
Terri Jorgenson Republican Yea
Tesa Schwans Republican Yea
Tim Czmowski Republican Not Voting
Tim Goodwin Republican Yea
Tim Reisch Republican Yea
Tim Walburg Republican Yea
Tina Mulally Republican Yea
Tony Kayser Republican Yea
Tony Randolph Republican Yea
Travis Ismay Republican Yea
Trish Ladner Republican Yea
Will Mortenson Republican Yea
William Shorma Republican Yea

Official roll call →

Do Pass

Passed 9 Yea · 2 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 9202
Total 9202
% of votes cast 69%15%0%15%
How each member voted (13)
Member Party Vote
Aaron Aylward Republican Yea
Curt Massie Republican Yea
John Hughes Republican Yea
Kent Roe Republican Yea
Keri Weems Republican Yea
Mike Weisgram Republican Yea
Peri Pourier Republican Yea
Phil Jensen Republican Nay
Rebecca Reimer Republican Yea
Tim Czmowski Republican Not Voting
Tim Walburg Republican Yea
Tony Randolph Republican Nay
Will Mortenson Republican Not Voting

Official roll call →

Do Pass Amended

Passed 33 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 29002
Democratic 3000
Unaffiliated 1000
Total 33002
% of votes cast 94%0%0%6%
How each member voted (35)
Member Party Vote
Otten — Yea
Jamie Smith Democratic Yea
Liz Larson Democratic Yea
Red Dawn Foster Democratic Yea
Amber Hulse Republican Yea
Arch Beal Republican Not Voting
Brandon Wipf Republican Yea
Carl Perry Republican Yea
Casey Crabtree Republican Yea
Chris Karr Republican Yea
Curt Voight Republican Yea
Glen Vilhauer Republican Yea
Greg Blanc Republican Yea
Helene Duhamel Republican Yea
Jim Mehlhaff Republican Yea
John Carley Republican Not Voting
Joy Hohn Republican Yea
Kevin Jensen Republican Yea
Kyle Schoenfish Republican Yea
Larry Zikmund Republican Yea
Lauren Nelson Republican Yea
Mark Lapka Republican Yea
Michael Rohl Republican Yea
Mykala Voita Republican Yea
Paul Miskimins Republican Yea
Randy Deibert Republican Yea
Sam Marty Republican Yea
Stephanie Sauder Republican Yea
Steve Kolbeck Republican Yea
Sue Peterson Republican Yea
Sydney Davis Republican Yea
Taffy Howard Republican Yea
Tamara Grove Republican Yea
Tim Reed Republican Yea
Tom Pischke Republican Yea

Official roll call →

Subjects

taxation housing
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Frequently asked questions

Who sponsors SB 228?
SB 228 is sponsored by Mike Weisgram (Republican), Mykala Voita (Republican), Carl Perry (Republican), Erik Muckey (Democratic), Bobbi Andera (Republican), and Chris Karr (Republican).
What is the current status of SB 228?
This bill has been enacted into law. Introduced February 04, 2026. Enacted.
Where can I track SB 228?
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