Tyler v. Hennepin County
2023A U.S. Supreme Court case holding that a government cannot keep surplus proceeds from a tax sale beyond the tax debt, which has influenced recent legislative updates in South Dakota regarding surplus distribution.
SD
South Dakota
Tax Deed
South Dakota tax lien auctions are held annually on the third Monday of December, utilizing an interest-bid-down mechanism where the lowest interest rate bid wins the lien. Investors receive a tax certificate, which may be redeemed by the owner within three years, plus a final 60-day notice period, before a tax deed can be pursued.
| Upcoming auctions | 0 |
| Counties covered | 66 |
| Scored properties | 0 |
| Last updated | Apr 15, 2026 |
Quick facts
- Sale type
- Tax lien
- Redemption period
- 3 years + 60 days
- Sale frequency
- Annual (December)
- Minimum bid
- Taxes, interest, and costs
- Interest rate
- Bid down by investor
- Deed type
- Tax deed (often quitclaim)
- Quiet title
- Recommended
Statutory framework
| Sale Type | Tax Lien |
| Redemption Period | The redemption period is three years from the date of the tax certificate sale. Following this, the certificate holder must provide notice of intent to take a tax deed, which triggers an additional 60-day redemption period. |
| Penalty / Interest | The interest rate is determined by an interest bid down method, where the bidder willing to accept the lowest annual interest rate on their investment wins the lien. |
| Jurisdiction Type | County |
| Jurisdiction Count | 66 |
| Typical Sale Month | December |
| Assessor Portal | — |
| GIS Portal | — |
| Tax Portal | — |
Sale mechanics
Auctions are primarily in-person and held annually on the third Monday in December. Bidders compete via an interest-bid-down process to accept the lowest interest rate. Registration requirements and payment terms vary by county, and the minimum bid is the total of delinquent taxes, interest, and costs.
Post-sale obligations
The winning bidder receives a tax certificate and does not have possession or maintenance obligations during the redemption period. The certificate holder is responsible for initiating the notice of intent to take a tax deed after the three-year period expires. Possession is only obtained after the tax deed is issued following the 60-day notice period.
Quiet title cost estimator
Estimate attorney and court costs for clearing title after a South Dakota tax deed purchase.
Estimated cost$3,500
Timeline6 mo.
Notable counties
Key South Dakota counties for tax deed investors.
Pennington County
Provides clear online guidance regarding tax deed notices and quiet title recommendations.
Brown County
Frequently conducts public auctions for tax-deed properties with clear procedural disclosures.
Recent statutory changes
- Effective Feb 12, 2024, SB 90 clarified that tax deeds vest an absolute estate in fee simple, subject to specific claims, and established a process for distributing surplus proceeds from tax deed sales.
How to bid at a South Dakota tax deed auction
Step-by-step process for participating in South Dakota tax deed sales.
- 1
Research the auction catalog
Review the list of delinquent properties published by the County Treasurer.
- 2
Perform property due diligence
Investigate the property's condition, title status, and potential municipal assessments.
- 3
Register with the county
Contact the County Treasurer to confirm registration requirements and deadlines.
- 4
Attend the auction
Participate in the in-person auction on the third Monday of December.
- 5
Submit interest bids
Bid the lowest annual interest rate you are willing to accept for the lien.
- 6
Pay the winning bid
Remit the required payment to the County Treasurer according to local county policy.
Applicable statutes
Primary statute sections governing tax deed sales in South Dakota.
Governs the interest bid down process at tax sales.
Defines the right to redeem tax certificates.
Sets the timeline for procuring a tax deed.
Describes the title vested by a tax deed.
Authorizes quiet title actions for tax purchasers.
Notable case law
Landmark court decisions affecting South Dakota tax deed investors.
Frequently asked questions
Common questions from South Dakota tax deed investors.
- The owner has three years from the sale date to redeem. After this, the holder must serve a 60-day notice of intent to take a deed, providing a final redemption window.
- Yes, it is highly recommended to obtain marketable title, as tax deeds are often issued as quitclaim deeds and may not be immediately insurable.
- Federal liens may survive the sale, and certain municipal special assessments remain the responsibility of the new owner.
- If the statutory notice procedures were not strictly followed, the sale may be set aside by a court.
- They are typically in-person at the county treasurer's office on the third Monday of December, using an interest-bid-down process.
- There is no statutory right to inspect; properties are sold as-is, and investors should perform independent due diligence.
How does South Dakota's redemption period work?
Do I need a quiet title action?
What title risks should a buyer know?
What happens if the owner challenges the sale?
How are auctions conducted?
Can I inspect properties before bidding?
Title Risk Flags
Tax deeds are often issued via quitclaim deed, which does not guarantee marketable title. Federal liens may survive a tax sale, and municipal special assessments may remain the responsibility of the new owner.
Data sourced from public state statutes, county recorder offices, and AuctionSift's proprietary county monitoring network. Updated weekly.