Exempting certain conveyances between grandparents and grandchildren from the real estate transfer fee. (FE)
Impact
If enacted, this bill will significantly affect the financial burden associated with property transfers between family members, particularly within the context of estate planning and intergenerational wealth transfer. Grandparents wishing to give property to their grandchildren will no longer have to navigate complex fee structures or incur added costs that could dissuade such transfers. The economic implications could be broad, benefiting families looking to maintain property within the family across generations without financial encumbrances.
Summary
Senate Bill 84 proposes to amend the existing real estate transfer fee laws in Wisconsin by exempting certain conveyances made between grandparents and grandchildren. Specifically, the bill allows for the transfer of real estate interests without incurring the real estate transfer fee if the transfer is made for nominal consideration or no consideration at all. This legislative move is aimed at facilitating easier intergenerational property transfers, which can often be subject to taxation under current laws.
Contention
While the bill may garner support for its intention to streamline property transfers within families, it could also raise concerns regarding tax revenue for local governments. Some legislators may argue that eliminating the transfer fee could negatively impact local funding that relies on these taxes. Therefore, potential points of contention could revolve around the balance between facilitating family property transfers and maintaining adequate municipal revenue streams. This debate will likely play a crucial role in discussions surrounding the bill as it moves through the legislative process.
Creating an employee ownership conversion costs tax credit and an exemption for capital gains from the transfer of a business to employee ownership. (FE)