The bill amends existing laws regarding tax deeds in South Dakota to clarify the rights and responsibilities associated with such deeds. Specifically, it states that any deed acquired under the specified sections vests an absolute estate in fee simple to the grantee, while also acknowledging that 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 or their successor is entitled to immediate exclusive possession of the property, regardless of any potential claims to redeem or contest that possession.

Furthermore, the bill outlines the distribution of proceeds from tax deed sales. After deducting the county's expenses related to the tax deed process and sale, the remaining proceeds must be prorated based on the most recent tax levies until all taxes and associated costs are settled. Any surplus proceeds 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.

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