ENTITLED An Act to revise provisions related to tax deeds and to declare an emergency.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That chapter 10-25 be amended with a NEW SECTION:
A county that has acquired real property by a tax deed shall declare the real property to be surplus property and conduct a sale in accordance with the provisions of chapter 6-13. The sale must occur within one year of the issuance of the tax deed. The proceeds of the sale must be distributed in accordance with 10-25-39. Notwithstanding the notice requirement contained in 6-13-4, the county shall give notice of the sale by publishing a notice of the sale at least twice, with the first publication not less than thirty days prior to the date of the sale.
Section 2. That chapter 10-25 be amended with a NEW SECTION:
Any person, except a county, acquiring real property by a tax deed after being issued a tax certificate shall offer the property at public auction in accordance with the provisions of chapter 6-13 and section 1 of this Act. The auction must occur within one year of the issuance of the tax deed. Following the sale, the seller of the property is entitled to compensation in the same manner as redemption of a tax certificate pursuant to 10-24-1. The proceeds of the sale must be distributed in accordance with 10-25-39.
Section 3. That 10-25-39 be AMENDED:
10-25-39. The proceeds of the tax deed sale, after deducting the expenses incurred by the county in the proceeding to take tax deed and in the sale proceeding, must be distributed by prorating the proceeds on the basis of the tax levies for the most recent year for which taxes are included in the proceeds of the sale, until all tax and interest have been paid.
Any surplus proceeds of the tax deed sale that remain after payment of the taxes, penalty, interest, and other costs, must be returned to the prior owner of record. If the prior owner of record cannot be found within one hundred eighty days, the surplus must be transferred to the Unclaimed Property Division pursuant to chapter 43-41B.
Section 4. That 10-25-12 be AMENDED:
10-25-12. Any deed acquired pursuant to sections 1 or 2 of this Act vests in the grantee an absolute estate in fee simple in the real property. However, the real property is subject to any claim that the state may have in the real property for taxes, liens, or encumbrances. The real property is also subject to any lien for past-due installments of special assessments for the financing of municipal improvements levied pursuant to chapter 9-43, including principal and interest on the installments except as provided by 9-43-100. The holder of the deed or the holder's successor in interest is entitled to immediate exclusive possession of the real property described in the deed regardless of the rights of any person to redeem or question exclusive possession thereafter.
Section 5. That 10-25-21 be REPEALED.
Section 6. That 10-25-22 be REPEALED.
Section 7. That 10-25-23 be REPEALED.
Section 8. That 10-25-27 be REPEALED.
Section 9. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.
An Act to revise provisions related to tax deeds and to declare an emergency.
I certify that the attached Act originated in the:
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
File No. ____ Chapter No. ______
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Received at this Executive Office this _____ day of _____________,
2024 at ____________M.
By for the Governor
The attached Act is hereby approved this ________ day of ______________, A.D., 2024
ss. Office of the Secretary of State
Filed ____________, 2024 at _________ o'clock __M.
Secretary of State
By Asst. Secretary of State
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