Delinquent property taxes can be a major issue for property owners in South Dakota. When a property owner falls behind on their taxes, the county government has the authority to sell the property at a tax lien sale to recover the unpaid taxes. This can result in a loss of property and equity for the owner, so it is important to understand the process and consequences of delinquent property taxes in South Dakota.

One unique aspect of delinquent property tax records in South Dakota is the state’s “tax-forfeited land” program. If a property owner fails to pay their property taxes for three or more years, the county treasurer can initiate the tax-forfeited land process. This means that the county government takes ownership of the property and can sell it to recover the unpaid taxes.

The tax-forfeited land program in South Dakota is designed to promote the productive use of land and prevent blight in communities. When the county takes ownership of a tax-forfeited property, they may sell it at public auction, negotiate a sale with a buyer, or transfer it to another governmental agency or nonprofit organization.

To avoid the tax-forfeited land process, property owners in South Dakota must make timely payments on their property taxes. Property taxes in South Dakota are due twice per year, on April 30th and October 31st. The property owner can pay the full amount or choose to make partial payments throughout the year.

If a property owner falls behind on their property taxes, they will receive a delinquent notice from the county treasurer. The notice will provide information on the amount owed, the due date, and the consequences of not paying. If the taxes remain unpaid, the county treasurer can initiate the tax-forfeited land process.

Property owners in South Dakota may also be subject to penalties and interest for late payment of property taxes. The interest rate is set annually by the South Dakota Department of Revenue and is based on the prime rate as of July 1st of the previous year. The penalty for late payment is 2% of the unpaid taxes per month, up to a maximum of 20%.

In addition to penalties and interest, delinquent property taxes in South Dakota can also lead to a tax lien sale. At a tax lien sale, the county government auctions off the tax lien on the property to the highest bidder. The winning bidder pays the delinquent taxes on the property and becomes the new owner of the tax lien. The property owner then has a certain amount of time to redeem the property by paying the delinquent taxes, plus any additional fees or penalties.

If the property owner fails to redeem the property within the redemption period, the tax lien holder can initiate foreclosure proceedings and take ownership of the property. This can result in a significant loss of equity and property for the original owner.

In conclusion, delinquent property taxes in South Dakota can lead to serious consequences for property owners. The tax-forfeited land program, penalties and interest, and tax lien sales are all tools that the county government can use to recover unpaid taxes. It is important for property owners to make timely payments on their property taxes to avoid these consequences and protect their investment in their property.