The Five-Million-Dollar “Oops”: Why Ignorance is No Excuse for a Taxing Official
When a private citizen makes a mistake on their taxes, the government doesn’t say, “Oh well, you thought you were doing it right.” They send a bill, they add interest, and they threaten a lien.
But when a County Auditor certifies millions of dollars in unauthorized “Special Maintenance Fees” for a special district, the defense is always the same: “We didn’t know the law.”
The Auditor’s Oath
Every County Auditor in South Dakota takes an oath to uphold the law. Their job description is to be the “Watchdog of the County.” In 2026, we have to ask: What were they watching? If an Auditor doesn’t know that a road district isn’t a city, and doesn’t know that “maintenance fees” don’t exist in any of the special district chapters, they aren’t making a mistake—they are failing their primary duty.
The “Good Faith” Fallacy
“Thinking you were right” is not a legal defense for a fiduciary. If a bank “thought” they could take an extra $100 from every customer’s account to fix the roof, we would call it theft. When a county does it to fund a road district’s “flat fee” wishlist, we call it an “administrative error.”
The people of South Dakota are tired of the “Closed Loop” where officials are only sorry after they get caught. If the county collected millions unlawfully, “oops” isn’t a refund policy.
The Choice for Pierre
As the 2026 Legislature debates property tax relief, they need to decide: Are we a state of laws, or a state of “Good Faith” excuses? If the Auditor General and the State’s Attorney allow this “Oops” defense to stand, they are telling every rogue board in the state that the law is just a suggestion.
It’s time to stop accepting “we didn’t know” as an answer from people whose only job is to know.