An Act to lower a maximum limit on the tax increment base value.

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

Section 1. That § 11-9-5 be AMENDED:

11-9-5. To establish 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. 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;

(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 two and one-half percent of the total assessed value of all taxable property in the political subdivision; and

(4) Assigns a name to the district for identification purposes. The first district created in each political subdivision must be known as "Tax Increment Financing District Number One, City (or Town, or County) of __________." Each subsequently created district must be assigned the next consecutive number.