The bill amends existing provisions 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 specified sections vests an absolute estate in fee simple to the grantee, but the property remains subject to claims from the state or county for taxes, liens, or encumbrances. Additionally, it emphasizes that the holder of the deed is entitled to immediate exclusive possession of the property, regardless of any redemption rights.

In section 10-25-39, the bill outlines the distribution of proceeds from tax deed sales, stating that after deducting county expenses, proceeds must be prorated based on tax levies from the most recent year. It also introduces a provision that any surplus proceeds remaining after settling taxes, penalties, interest, and county liens must be returned to the prior owner of record. If the prior 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