State Summary

• Tax Collection Method: Liens
• Primary Bidding Type: Bid-down interest
• Redemption Period: 3 years
• Redemption Interest Rate/Flat Penalty: 10% simple interest per annum

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of South Dakota. Please read this information carefully. There are tax collection laws that pertain to all counties in South Dakota, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is South Dakota a tax lien or a tax deed state?
South Dakota is a tax lien state.

What is the name of the county official whom typically collects property taxes in South Dakota?
County Treasurer.

When are property taxes due in the state of South Dakota?
The annual tax bill is delivered to the property owner in January and due in two equal installments. The first installment is due April 30 and the second installment is due October 31. 

When do property taxes become delinquent in the state of South Dakota?
Property tax bills become delinquent one day after the due dates and accrue simple interest at 10% per annum.

What is the name of the county official whom typically conducts tax lien sales in South Dakota?
County Treasurer.

When does the typical South Dakota county hold their annual tax lien sale?
South Dakota counties hold their tax lien sales on the third Monday in July.

What are the registration requirements for the typical South Dakota tax lien sale?
Registration requirements vary by county.

What is the bidding type used at a typical South Dakota tax lien sale?
Bid-down interest at a public outcry auction.

What forms of payment are generally accepted at a typical South Dakota tax lien sale?
A typical South Dakota county requires certified funds.

What are the general terms of payment for the typical tax lien certificate purchased at a South Dakota tax lien sale?
Most South Dakota counties require full payment the day of the sale.

What is the redemption period for tax lien certificates in South Dakota?
The redemption period is three years and starts on the day that the certificate is first offered for purchase.

What is the maximum return (interest rate and/or flat penalty rate) investors earn while they hold the tax lien certificate?
If the purchaser of the tax lien certificate wins the certificate at the maximum 10%, and if a tax lien certificate is redeemed just prior to the end of the three-year redemption period, the investor's return would be 30% (10% x 3 years).

Are tax liens certificates offered "over-the-counter" in South Dakota?
Yes, counties will offer "over-the-counter" tax lien certificates that have not sold at the tax lien sale.

What is the name of the office that determines the values of properties on a annual basis?
The State of South Dakota's Property Tax Division is responsible for overseeing the property tax assessment and tax laws of the state.

For more information on the life cycle, requirements, and administering of tax liens in the state of South Dakota, refer to Title 10 and Title 44 in the South Dakota Codified Laws.


South Dakota County Reference