The amount and distribution of the real estate transfer fee. (FE)
Impact
If enacted, SB274 would significantly impact local government finances by increasing the revenue retention for counties involved in real estate transactions. The change aims to provide more resources for local governments, allowing them to fund essential services. However, the reduction of the transfer fee may lead to a decrease in state revenue generated from these transactions, raising concerns among some legislators regarding long-term fiscal implications at the state level. The bill is anticipated to lower the upfront costs related to property transactions, making home buying more accessible for residents.
Summary
Senate Bill 274 aims to amend the existing structure of the real estate transfer fee in Wisconsin. Currently, the law imposes a fee of 30 cents for every $100 in value of real estate transactions, which is collected at the point of sale. The proposed bill seeks to reduce this fee to 20 cents per $100 of value, aiming to alleviate financial burdens on home buyers and sellers. The bill also stipulates changes in the distribution of the fees collected, where counties would retain a higher percentage over time: starting with 30% in 2023 and 2024, increasing to 40% in 2025, and finally reaching 50% in 2026 and beyond.
Contention
Notable points of contention surrounding SB274 focus on the balance between state revenue needs and local government funding. Some opponents argue that reducing the transfer fee may lead to insufficient funding for state programs that rely on revenue from property taxes and transfer fees. Proponents express that the bill will stimulate the housing market by easing costs for buyers, potentially leading to increased home sales and fostering economic growth. The debate highlights ongoing tensions between the need for state-level fiscal sustainability and the financial autonomy of local governments.
The amount and distribution of the real estate transfer fee, grants under the land information program, real property recording notification systems, and making an appropriation. (FE)
The amount and distribution of the real estate transfer fee, grants under the land information program, real property recording notification systems, and making an appropriation. (FE)
Eliminates supplemental realty transfer fee and one percent fee on transfers of certain commercial real estate and tax on sale of controlling interests in certain commercial real property.