Property tax foreclosure in South Dakota

The property tax process in South Dakota, step by step

1. Taxes become delinquent and interest starts

   May 1 (first half) and November 1 (second half)

   Interest of five-sixths of one percent a month, about 10 percent a year, is added on the first day of each month the taxes are late. Your county may let you make partial payments if you apply to the treasurer.

   SDCL 10-21-4, 10-21-7, 10-21-23, 54-3-16

2. Notice before the tax certificate sale

   Mailed at least 14 days before the sale

   The treasurer publishes the list the week before the sale and mails or emails a notice to the owner. If you will be 70 or older by the sale date and live in the home, you must tell the treasurer before the sale to use the senior homestead protection.

   SDCL 10-23-2, 10-23-2.1, 10-23-2.5

3. Annual tax certificate sale

   Third Monday in December

   The treasurer offers a tax certificate, which is a lien for the unpaid taxes, not the home itself. Bidders compete on the lowest interest rate, up to 10 percent a year, and if no one bids the county takes the certificate. Counties hold all certificates unless the county commission votes to allow sales.

   SDCL 10-23-7, 10-23-8, 10-23-24, 10-23-28.1

4. Redeem any time before a tax deed

   Until a tax deed is issued

   Pay the treasurer the certificate amount, interest at the certificate's rate, and any later taxes the holder paid with interest. The treasurer gives you a receipt and cancels the certificate.

   SDCL 10-24-1

5. Notice of intention to take a tax deed

   From 3 to 6 years after the certificate sale

   The holder must have the notice personally served on the owner, the person living there and the taxpayer, and mailed to mortgage lenders and lienholders. Your right to redeem ends 60 days after proof of service is filed with the treasurer.

   SDCL 10-25-1, 10-25-2, 10-25-3, 10-25-5, 10-25-8

6. Tax deed and required auction

   Auction within 1 year after the tax deed

   Since February 12, 2024, a county that takes a tax deed must sell the property at a public sale within a year, and any other holder must auction it the same way. The buyer at that sale gets the deed and immediate possession. A lawsuit to recover the property or void the tax deed must be filed within 180 days after the deed is recorded.

   SDCL 10-25-12, 10-25-39.1, 10-25-39.2, 10-25-44

7. Surplus goes back to the prior owner

   If you are not found within 180 days, it goes to Unclaimed Property

   Money left after taxes, penalty, interest, county liens and sale costs must be returned to the prior owner of record. If you cannot be found within 180 days, it is sent to the State Treasurer's Unclaimed Property Division, so keep your address current with the county treasurer.

   SDCL 10-25-39

Common questions in South Dakota