lower the cost threshold at which a tax increment finance base must be redetermined.

HB 1247 (South Dakota House Bill 1247) lowers the cost threshold requiring municipalities to recalculate the tax increment finance (TIF) base for development projects. Currently, if project costs exceed 35% of the original plan, the TIF base must be redetermined; this bill reduces that threshold to 15%. It directly affects South Dakota municipalities using TIF districts to fund infrastructure or development, requiring them to reassess the TIF base more frequently for smaller cost increases. The change applies to projects where additional costs exceed 15% of the original budget, ensuring the TIF base reflects actual project expenses sooner.