The “Good Faith” Loophole: Why South Dakota Needs an Audit with Accountability
A county can collect millions of dollars for ten years through fees that have no basis in state law. Yet, their likely defense is simple: “We thought we were doing it right.”
This is the central flaw in South Dakota’s oversight system. The defense of “good faith error”—often used as a legal shield—means that as long as an official can claim ignorance, they can avoid liability for a decade-long mistake.
The Auditor’s Convenient Amnesia
The fact that the DLA has missed this issue for ten years actually makes the county’s excuse of “relying on the state auditors” even stronger. But ignorance of the law should never be an excuse for someone whose job description is to ensure the law is followed.
Closing the Loophole in 2026
We don’t need a tax system that rewards the “forgetful” and punishes the vigilant. We need:
- A Clear Timeline: The “Good Faith” defense must end the moment a citizen formally puts a county official on notice of a statutory conflict.
- DLA Scope Reform: The DLA must be required to verify the source statute of all certified fees, closing the loophole that allowed this decade-long error to persist.
“Good faith” is for intentions, not for multi-million-dollar tax collections. In 2026, we must demand accountability that goes beyond simply accepting “oops” as a final answer.