What happens if I don’t pay my property taxes in full?
If you do not pay your property taxes in full in South Dakota, you could be subject to penalties and interest on the amount owed. The penalties and interest will accumulate until the amount due is paid in full. The South Dakota Department of Revenue may also take enforcement actions to ensure timely payment of unpaid taxes, including placing a lien on the taxable property. The lien is usually attached to the property and does not legally take away from the ownership of the property. However, it does prevent the sale of the property until the back taxes are paid in full. Other enforcement actions can also be taken, such as issuing a warrant of distraint, which is basically a court order requiring you to pay the taxes. Additionally, the IRS may step in and file a Notice of Federal Tax Lien, which legally places a claim on your property and can be detrimental to your credit rating. Ultimately, if taxes remain unpaid, the property could be foreclosed upon and your legal ownership of the property would be revoked.
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