22.783.11 97th Legislative Session 706

2022 South Dakota Legislature

House Bill 1197


An Act

ENTITLED An Act to include certain costs as project costs for tax increment financing districts.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 11-9-15 be AMENDED:

11-9-15. Project costs include:

(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 existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing, over-excavation, and grading of land, including use of engineered fill and soil compaction; and the amount of interest payable on tax increment bonds issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the project plan, are sufficient to pay the principal of and interest on the tax increment bonds when due;

(2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for project costs, any premium paid over the principal amount thereof because of the redemption of obligations prior to maturity and a reserve for the payment of principal and interest on obligations in an amount determined by the governing body to be reasonably required for the marketability of obligations;

(3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a district less any proceeds to be received by the municipality 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;

(5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a project plan;

(6) Relocation costs;

(7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of a district and the implementation of project plans; and

(8) Payments and grants made, at the discretion of the governing body, which 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 payment or grant may be used for any residential structure pursuant to § 11-9-42.

An Act to include certain costs as project costs for tax increment financing districts.

I certify that the attached Act originated in the:

House as Bill No. 1197

Chief Clerk

Speaker of the House


Chief Clerk

President of the Senate


Secretary of the Senate

House Bill No. 1197

File No. ____

Chapter No. ______

Received at this Executive Office

this _____ day of _____________,

2022 at ____________M.


for the Governor

The attached Act is hereby

approved this ________ day of

______________, A.D., 2022




Office of the Secretary of State

Filed ____________, 2022

at _________ o'clock __M.

Secretary of State


Asst. Secretary of State