Sen. Taffy Howard

Maddy summarySB 191 removes the ability for local governments (counties or municipalities) to issue grants as part of a tax increment financing district. The bill amends South Dakota law by deleting the provision that allowed "payments and grants" to be included in "project costs" for these districts. This change specifically eliminates the authorization for governing bodies to use district funds for grants, restricting allowable uses to direct project costs like construction, bonds, or professional services. The bill affects how local governments can fund redevelopment projects within designated tax increment districts.

Maddy summarySB 192 corrects a typo in South Dakota's law governing tax increment financing districts by clarifying that at least 50% of a proposed district's area must qualify as blighted or meet economic development criteria. This change directly affects counties and municipalities seeking to create such districts for redevelopment projects. The bill does not alter the definition of "blighted area" (which includes deteriorated structures, poor layouts, or unsafe conditions) or other requirements like municipal consent. It ensures the legal standard is clear and consistent for local governments pursuing economic revitalization through tax increment financing.

Maddy summaryThis bill amends South Dakota tax law to establish two specific methods for determining the purchase price of a used vehicle acquired by gift or other transfer with no or minimal payment. It directly affects individuals receiving vehicles this way, as it provides an alternative to the default tax assessment method. The key change allows taxpayers to use either the retail value from a nationally recognized dealers' guide (approved by the Secretary of Revenue) or a documented bill of sale showing the actual prior purchase price. This gives people a clearer path to prove the vehicle's value for excise tax purposes, potentially reducing their tax burden compared to the previous default of using the retail guide value.

Maddy summaryHB 1222 prohibits members of South Dakota's Board of Economic Development from holding any financial interest (such as ownership or board membership) in entities that receive funding, grants, or public money approved by the Board. This directly affects Board members and businesses or organizations seeking economic development funds. The key provision bans conflicts of interest by ensuring Board members cannot benefit financially from the organizations they help fund. The bill aims to prevent self-dealing in economic development funding decisions.

Maddy summarySB 6 reduces the maximum duration of reemployment benefits for eligible South Dakota workers. The bill amends Section 61-6-8 to shorten the standard benefit period from 26 weeks to a shorter duration (as specified in the amended statute). This directly affects individuals who qualify for state unemployment benefits by limiting how long they can receive payments. The key provision modifies the existing benefit calculation to decrease the total weeks available, without changing the weekly benefit amount. The bill does not address trade readjustment training extensions or base period wage calculations.

Maddy summarySB 207 requires voter approval for creating tax increment financing (TIF) districts in South Dakota when estimated project costs exceed $15 million. It applies to cities, towns, or counties seeking to establish such districts. The bill mandates a special election (or inclusion in the next regular election if timing aligns) for voter approval of these high-cost TIF districts. This change modifies existing law to add a referendum requirement for districts above the $15 million threshold, while smaller TIF districts remain subject to governing body resolution without voter input.

Maddy summarySB 232 imposes a one-year moratorium (through June 30, 2027) on building new hyperscale data centers or expanding existing ones to meet the hyperscale definition in South Dakota. A "hyperscale data center" is defined as a facility with peak electrical demand of 50 megawatts or greater, used for storing, managing, and processing large volumes of electronic data. The moratorium applies to both new construction and expansions that would cause a facility to reach or exceed the 50-megawatt threshold. This bill directly affects data center developers and operators planning projects meeting the specified size criteria.

Maddy summarySB 128 requires data centers (defined as facilities managing electronic data) to notify local water providers about projected water use and implement closed-loop cooling systems that limit net water withdrawal. It prohibits these facilities from exceeding water usage limits after residential and essential public services are allocated, and mandates reduced use during declared water shortages. Data centers must submit quarterly public reports detailing water usage and compliance. The bill directly affects large data center operators in South Dakota, focusing on sustainable water management for this growing sector.

Maddy summarySB 127 limits data center operations to reduce disruptions for nearby residents. It prohibits new data centers within one mile of residential areas (though local governments can set stricter rules) and caps continuous noise at 45 decibels near residential property lines. The bill defines data centers broadly to include cloud services, cryptocurrency mining, and streaming platforms. Violations would be deemed legal nuisances, allowing state attorneys or affected residents to seek court orders to stop the disruptions.

Maddy summaryHB 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.