The bill amends existing laws regarding tax deeds in South Dakota, specifically sections 10-25-12 and 10-25-39. In section 10-25-12, it clarifies that any deed acquired under sections 10-25-39.1 or 10-25-39.2 grants the grantee an absolute estate in fee simple, but the property remains subject to any claims for taxes, liens, or encumbrances from the state or county. Additionally, it affirms that the holder of the deed is entitled to immediate exclusive possession of the property, regardless of any redemption rights or challenges to possession.

In section 10-25-39, the bill specifies the distribution of proceeds from tax deed sales, stating that after deducting county expenses, proceeds must be prorated based on the most recent tax levies until all taxes and interest are paid. Any surplus remaining after these payments must be returned to the prior owner of record, and if the owner cannot be located within 180 days, the surplus will be transferred to the Unclaimed Property Division as per chapter 43-41B.

Statutes affected:
Introduced, 01/23/2025: 10-25-12, 10-25-39
Enrolled, 03/10/2025: 10-25-12, 10-25-39