South Dakota House Bill HB1154

South Dakota 2022 Regular Session

• Introduced: 1/26/22

Caption

Reduce the number of years of delinquent property taxes required for a county to issue a tax deed on a property.

Impact

Should HB1154 be enacted, it would significantly alter the timelines for property tax collections in South Dakota. By allowing counties to pursue tax deeds more quickly, counties may enhance their revenue collection efforts. This could be seen as beneficial for local governments that rely heavily on property tax revenues to fund essential services. Conversely, the reduced period for redemption may lead to concerns among property owners about losing their properties without adequate opportunities to settle their debts, thereby raising potential pushback from homeowners and advocacy groups.

Summary

House Bill 1154 proposes to amend existing South Dakota laws concerning delinquent property taxes, specifically reducing the number of years that property taxes must be delinquent before a county can issue a tax deed on the property. Previously, property owners had to be delinquent for at least six years; this bill seeks to change that to three years, ostensibly to expedite the process by which counties can reclaim properties due to unpaid taxes. The bill aims to streamline tax collection processes at the county level, making it easier for local governments to manage properties that have not been redeemed by their owners within the stipulated time frame.

Contention

One notable point of contention around HB1154 is the balance between local government efficiency and property owner rights. Proponents argue that shorter redemption periods prevent properties from languishing in delinquency and ensure that local governments can promptly return unpaid properties to the tax rolls. However, opponents might view this as an overreach, emphasizing that it strips property owners of their rights and ignores the financial hardships that can lead to tax delinquency, particularly in economically disadvantaged communities.