The collection of real estate taxes for properties located in Oldham South Dakota is a major priority for the Kingsbury County South Dakota Tax Collector. Real estate taxes fund local services such as public education, police protection and medical services.
Delinquent property taxes create a serious cash-flow problem for Kingsbury County South Dakota. If Kingsbury County South Dakota is unable to collect property taxes, they are also unable to fund important government services like police protection, public schooling, and emergency medical services.
Without the tax revenue generated from real estate located in Oldham South Dakota, Kingsbury County South Dakota would literally go bankrupt.
To solve this cash-flow problem, Kingsbury County South Dakota allows investors to come in and pay off a portion of these delinquent property taxes.
In return, Kingsbury County South Dakota gives investors South Dakota tax lien certificates. A tax lien certificate is a document indicating ownership of a real estate tax lien. A tax lien is simply a claim for taxes.
A South Dakota tax lien certificate transfers all the rights that come with being the owner of the real estate tax lien from Kingsbury County South Dakota to the investor.
When purchasers buy tax lien certificates in South Dakota, they are paying someone else's delinquent property taxes. What's more, South Dakota actually gives purchasers the right to receive all of the tax money due - including fees, interest, and/or penalties.
To encourage delinquent owners to pay their past-due property taxes, the state of South Dakota charges up to 10% per annum on the amount paid to satisfy the delinquent taxes, which is passed directly to the tax lien certificate purchaser.
The sale of tax lien certificates is a solution to a complex problem Kingsbury County South Dakota recovers lost revenue needed to fund local services, the property owner gets more time to satisfy their delinquent property tax bill and the purchaser receives a tax lien certificate which is real estate secured and offers up to 10% per annum mandated by South Dakota law.
For "risk-sensitive" investors South Dakota tax lien certificates are an attractive alternative to traditional investments choices. With tax lien certificates, purchasers are investing their money with Kingsbury County South Dakota and when the Kingsbury County South Dakota Tax Collector collects the past due taxes, they send purchasers a check, returning what they paid to purchase the South Dakota tax lien certificate plus applicable penalties, interest, and/or late fees.
South Dakota tax lien certificates are attractive in several ways. First, the rise and fall of interest rates has no effect on South Dakota tax lien certificates. Unlike the stock market, interest rates on South Dakota tax lien certificates are mandated by South Dakota law.
In addition, South Dakota tax lien certificates are secured by real estate. So if purchasers do not receive what they paid to purchase the South Dakota tax lien certificate plus interest and/or penalties within the law mandated redemption period, the purchaser acquires title to the property free and clear of all liens created prior to the sale.
So in review, there are generally two outcomes with the purchase of a tax lien certificate; the purchaser will either receive what was paid to satisfy the delinquent property taxes PLUS up to 10% per annum, or Kingsbury County South Dakota has the legal right to transfer them the property - often with no mortgage!
Once they own the property they can do whatever they like; sell it, rent it for monthly cash-flow, even move in (often with no mortgage payment).
As with any investment, there is always an element of risk. Even if the tax sale process is written into South Dakota law, mandated by South Dakota law, and regulated by South Dakota law, there is still a chance of purchasers incurring substantial loss. It is recommended that anyone considering buying a tax lien or tax foreclosure property consult properly licensed legal and accounting professionals.
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Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates on tax-delinquent property located in Oldham South Dakota.
Learn about Tax Lien Certificates in other counties or municipalities located in South Dakota.
The following is a list of counties located in the state of South Dakota. Tax Lien Certificates for properties located in the following counties are sold at South Dakota county tax sales.
Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:
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