South Dakota
SD
The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.
Sale type
Tax lien
Redemption
Not documented
Interest / penalty
Bid-down · 10%
Sale timing
Annual
Rules in plain English
Sale type
Tax lien
The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.
SDCL 10-23-7; 10-23-8
“the treasurer shall offer at public sale at the courthouse a tax certificate for any real property that is liable for taxes”official source ↗
Redemption period
Not documented
Not documented
SDCL 10-25-1
“A proceeding shall be initiated after three years from the date of the tax certificate sale or at any time thereafter within six years from the date of the tax certificate sale”official source ↗
Interest / penalty
Bid-down · 10%
Bidding starts at a maximum rate of 10% per year and goes down.
SDCL 10-23-8
“No rate of interest higher than ten percent per year is a valid bid pursuant to this section”official source ↗
Bid method
Bid down the interest rate
Bidders compete by offering the lowest interest rate rather than the highest price.
SDCL 10-23-8
“The bid offered on the tax certificate at the lowest rate of interest per year is considered the best bid”official source ↗
Sale schedule
Annual
Sales are held about once a year.
SDCL 10-23-7
“On the third Monday of December in each year, between the hours of nine a.m. and four p.m. the treasurer shall offer at public sale”official source ↗
Redemption detail
- Base period
- Not documented
- Starts from
- the sale date
- Notice days
- Not documented
- Exceptions
- Not documented
Bidder process
- 01Read the treasurer's notice of sale, published in the county's official newspapers the week before the sale, listing the parcels to be sold and the taxes due (SDCL 10-23-2, 10-23-3)
- 02Attend the public sale at the courthouse on the third Monday of December between 9 a.m. and 4 p.m., when the treasurer offers a tax certificate for each parcel in tax-list order (SDCL 10-23-7, 10-23-8)
- 03Bid the full amount of taxes, interest and costs due and state the lowest interest rate per year you will accept; the lowest rate bid wins, and no rate above ten percent a year is valid (SDCL 10-23-8)
- 04Pay the amount due at the sale; if you fail to pay, the treasurer may offer the certificate again or bring a civil action for the amount (SDCL 10-23-9)
- 05Receive the tax certificate, which states the sum paid and when you may take a deed and is presumptive evidence of regularity (SDCL 10-23-18)
- 06Note the county's redemption fee, which the county commission may set at up to fifty dollars and which is deducted from the holder's proceeds on redemption (SDCL 10-23-8)
- 07Buy any unsold certificate at private sale at the treasurer's office for the taxes, penalty and costs due (SDCL 10-23-12)
- Registration
- Not documented
- Registration mode
- Not documented
- Registration deadline
- Not documented
- Registration fee
- Not documented
- Deposit required
- Not documented
- Deposit amount
- Not documented
- Deposit percent
- Not documented
- Deposit refundable
- Not documented
- Sale format
- in_person
- Payment deadline
- at the sale: a bidder who fails to pay the amount due has the certificate offered again, or re-advertised and sold or collected by civil action (SDCL 10-23-9)
- Payment methods
- unknown
- Residency required
- Not documented
- A bid must offer the full amount of taxes, interest and costs due and state the lowest interest rate the bidder will accept; the lowest rate is the best bid and no rate above ten percent a year is valid (SDCL 10-23-8)
SDCL 10-23-7
“On the third Monday of December in each year, between the hours of nine a.m. and four p.m. the treasurer shall offer at public sale at the courthouse a tax certificate for any real property that is liable for taxes of any description for the preceding year or years, and that remains due and unpaid. The treasurer may adjourn the sale from day to day until all the tax certificates have been offered”official source ↗
SDCL 10-23-8
“If any person bids the full amount of the taxes, interest, and costs due, stating in the bid the lowest rate of interest per year at which the bidder will pay the taxes assessed and due against the property, the treasurer shall sell and issue to that bidder the tax certificate. In no case may the rate of interest exceed the rate named in the bid. The bid offered on the tax certificate at the lowest rate of interest per year is considered the best bid”official source ↗
SDCL 10-23-8 (maximum rate)
“No rate of interest higher than ten percent per year is a valid bid pursuant to this section”official source ↗
SDCL 10-23-8 (redemption fee)
“The county commission may, by resolution, establish a fee not to exceed fifty dollars. No property owner may be assessed this additional fee. The fee shall be deposited in the county general fund”official source ↗
SDCL 10-23-9
“If any person bidding fails to pay the amount due, the treasurer may again offer the tax certificate for sale if the sale has not been closed. If the sale has been closed, the treasurer may again advertise the tax certificate by one notice posted for two weeks on the door of the courthouse. After the additional two week posting, the tax certificate may be sold at public sale or the treasurer may recover the amount by civil action brought in the name of the county”official source ↗
SDCL 10-23-18
“The purchaser of a tax certificate sold by the treasurer for taxes is entitled to a tax certificate describing the real property, the sum paid and stating the time when the purchaser will be entitled to a deed. The tax certificate shall be signed by the treasurer and is presumptive evidence of the regularity of all prior proceedings”official source ↗
SDCL 10-23-12
“if any tax certificate remains unsold for want of bidders, the treasurer is authorized and required to sell the tax certificate at private sale at the treasurer's office to any person who will pay the amount of taxes, penalty, and costs due on the property”official source ↗
SDCL 10-23-2
“The treasurer shall give notice of the sale of the tax certificate by publication of the sale once during the week before the sale in the official newspapers of the county”official source ↗
Notes
SDCL 10-23-7, 10-23-8, 10-24-1, 10-25-1. | Prose: lien | bid-down; max 10% per year | until tax deed; deed proceeding after 3 and within 6 years of sale | bid down to lowest interest rate (max 10%/yr) | third Monday in December