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Wisconsin Senate Bill SB918

Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB918 Compare Versions

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33 2023 - 2024 LEGISLATURE
44 2023 SENATE BILL 918
55 January 19, 2024 - Introduced by Senators STAFSHOLT, TAYLOR, COWLES and QUINN,
66 cosponsored by Representatives PENTERMAN, SCHMIDT, KRUG, GREEN, MURSAU,
77 EDMING, MURPHY, RETTINGER and DITTRICH. Referred to Committee on
88 Housing, Rural Issues and Forestry.
99 ***AUTHORS SUBJECT TO CHANGE***
1010 AN ACT to repeal 59.69 (8) and 75.36 (3) (bm); to renumber and amend 75.35
1111 (2) (a), 75.35 (2) (e) and 75.36 (2m); to amend 75.35 (2) (title), 75.35 (2) (d), 75.35
1212 (3), 75.35 (7), 75.36 (3) (a) 2., 75.36 (3) (a) 3. and 75.69 (2); and to create 75.35
1313 (2) (ag), 75.36 (2k) and 75.36 (2m) (b) of the statutes; relating to: the county
1414 sale of tax-deeded lands.
1515 Analysis by the Legislative Reference Bureau
1616 This bill makes changes to current law regarding the process by which a county
1717 sells land it has acquired by a tax-deed for the enforcement and collection of
1818 delinquent property taxes. The changes include the following:
1919 1. Under current law, a county board is authorized to engage licensed real
2020 estate brokers and salespersons to assist in selling tax-deeded land. Under the bill,
2121 the county may sell such lands by open or closed bid.
2222 2. Under current law, when selling tax-deeded land, the county may give
2323 preference to the former owner or heirs of the former owner who wish to purchase
2424 the land. Under the bill, the county may also give preference to the beneficiaries of
2525 the former owner who wish to purchase the land.
2626 3. Except for counties with a population of 750,000 or more, current law
2727 prohibits the sale of tax delinquent real property acquired by a county unless the sale
2828 and appraised value of the property has first been advertised by publication of a class
2929 3 notice. However, a county that enacts an ordinance giving preference to the former
3030 owner or the heirs of the owner who wish to purchase the property is exempt from
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3737 SENATE BILL 918
3838 the requirement that the sale must first be advertised by publishing a notice, if the
3939 net proceeds from the sale are sufficient to pay all special assessments and special
4040 charges on the property, including interests.
4141 Under the bill, this exemption applies if the net proceeds from the sale are equal
4242 to or exceed the amounts owed the county as delinquent taxes, interests, penalties,
4343 and amounts associated with selling the property.
4444 4. Under current law, the net proceeds from the county's sale of the property
4545 are determined by subtracting certain amounts from the sales price, such as the
4646 amount of real estate agent or broker fees paid for selling the property. The bill
4747 modifies current law by allowing the subtraction of reasonable and customary real
4848 estate agent or broker fees or other actual costs paid for selling the property.
4949 5. Under current law, if the county is unable to locate the former owner within
5050 five years following the mailing of the notice, the former owner forfeits the right to
5151 any remaining equity in the property. The bill eliminates that provision.
5252 For further information see the local fiscal estimate, which will be printed as
5353 an appendix to this bill.
5454 The people of the state of Wisconsin, represented in senate and assembly, do
5555 enact as follows:
5656 SECTION 1. 59.69 (8) of the statutes is repealed.
5757 SECTION 2. 75.35 (2) (title) of the statutes is amended to read:
5858 75.35 (2) (title) POWER OF COUNTY COUNTY REQUIRED TO SELL ARRANGE FOR THE
5959 SALE OF TAX-DEEDED LANDS.
6060 SECTION 3. 75.35 (2) (a) of the statutes is renumbered 75.35 (2) (am) and
6161 amended to read:
6262 75.35 (2) (am) Except as provided in s. Subject to this section and ss. 75.36 and
6363 75.69, any county shall have the power to sell and convey its tax-deeded lands in
6464 such manner and upon such terms as the county board may by ordinance or
6565 resolution determine, including without restriction because of enumeration, sale by
6666 land contract, or by quitclaim or warranty deed with mortgage from vendee to secure
6767 any unpaid balance of the purchase price. Such mortgage may be foreclosed in the
6868 same manner as any other mortgage. The title to lands conveyed by land contract
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8484 SECTION 3
8585 SENATE BILL 918
8686 shall remain in the county until fully paid for and in the event of default in such
8787 payment the county may foreclose the land contract with costs and reasonable
8888 attorney fees. When such land contract runs to a person or private corporation, the
8989 lands therein conveyed shall be placed on the tax roll and be subject to taxation the
9090 same as though absolute title thereto was vested in the purchaser under such land
9191 contract. Such purchaser shall be liable to pay all taxes against such land and in the
9292 event of failure to make such payment the county may pay the same and add the sum
9393 so paid to the amount due on the land contract.
9494 SECTION 4. 75.35 (2) (ag) of the statutes is created to read:
9595 75.35 (2) (ag) If a property or the county is subject to s. 66.1006, the county shall
9696 publish the notice under s. 75.69 (1) no later than 180 days after the date of approval
9797 from the department of natural resources.
9898 SECTION 5. 75.35 (2) (d) of the statutes is amended to read:
9999 75.35 (2) (d) The county board may delegate its power to manage and sell
100100 tax-deeded lands to a committee constituted of such personnel and in such manner
101101 and compensated at such rate as the county board may by ordinance determine,
102102 provided that the compensation and mileage of county board members serving on
103103 such committee shall be limited and restricted as provided in s. 59.13 (2), or the
104104 county board may delegate the power of acquisition, management and sale of
105105 tax-deeded lands or any part of such power to such officer and departments of the
106106 county as the county board may by ordinance determine. Such ordinance shall
107107 prescribe the policy to be followed in the acquisition, management and sale of
108108 tax-deeded land and shall prescribe generally the powers and duties of such
109109 committee, officers, departments, employees and agents. The county board is
110110 authorized to sell and convey its tax-deeded lands by open or closed bid or to engage
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137137 SECTION 5 SENATE BILL 918
138138 licensed real estate brokers and salespersons to assist in selling such lands and pay
139139 a commission for such service and to advertise such sale in such manner as it deems
140140 proper. The county board may appropriate such sums of money as may be necessary
141141 to carry out the provisions of this section.
142142 SECTION 6. 75.35 (2) (e) of the statutes is renumbered 75.35 (2) (e) 1. and
143143 amended to read:
144144 75.35 (2) (e) 1. Any county acting either by its board or by delegated authority
145145 as provided in this section may sell and convey tax-deeded lands to the former owner
146146 or owners thereof and such before or after publication of the notice required par. (ag)
147147 and without complying with s. 75.69.
148148 2. A conveyance under subd. 1. shall not operate to revive any tax certificate
149149 lien or any other lien whatsoever which was cut off and rendered void by the tax deed,
150150 foreclosure of tax certificate, deed in lieu of tax deed, action in rem under s. 75.521
151151 or other means by which the county acquired title to such land, nor shall it revive the
152152 lien of any tax certificate or tax dated subsequently to the date on which the county
153153 acquired its title. The enactment into statute law of the provisions of this paragraph
154154 shall not be deemed an expression of legislative intent that the prior common law of
155155 this state was otherwise than as herein provided.
156156 SECTION 7. 75.35 (3) of the statutes is amended to read:
157157 75.35 (3) PREFERENCE TO FORMER OWNER TO REPURCHASE. The county board may,
158158 at its option, by ordinance provide that in the sale of tax-deeded lands, the former
159159 owner who lost his or her title through delinquent tax collection enforcement
160160 procedure, or his or her beneficiaries, as defined in s. 851.03, or heirs, as defined in
161161 s. 851.09, may be given such preference in the right to purchase such lands as such
162162 ordinance shall provide. Such ordinance may provide that such sale be exempt from
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190190 SECTION 7
191191 SENATE BILL 918
192192 any or all provisions of s. 75.69 if the net proceeds from the sale to the former owner
193193 as determined are equal to or exceed the amounts due the county under s. 75.36 (2m)
194194 and (3) will be sufficient to pay all special assessments and special charges to which
195195 the property is subject, including interest imposed under s. 74.47, or if the county
196196 settles in full with the taxing jurisdiction for special assessments, as defined in s.
197197 75.36 (1), to which the property is subject. Such ordinance shall not apply to
198198 tax-deeded lands which have been improved for or dedicated to a public use by the
199199 county subsequent to its acquisition thereof.
200200 SECTION 8. 75.35 (7) of the statutes is amended to read:
201201 75.35 (7) LIABILITY PRECLUDED. Absent fraud, no county is liable for acts or
202202 omissions associated with the sale of property under this section, including the
203203 process by which the property is sold.
204204 SECTION 9. 75.36 (2k) of the statutes is created to read:
205205 75.36 (2k) COUNTY SALE OF PROPERTY. Unless otherwise provided in this chapter,
206206 any property acquired by a county by tax deed under this chapter shall be disposed
207207 of as provided under this section and ss. 75.35 and 75.69.
208208 SECTION 10. 75.36 (2m) of the statutes is renumbered 75.36 (2m) (a) and
209209 amended to read:
210210 75.36 (2m) (a) Upon acquisition of a tax deed under this chapter, the county
211211 treasurer shall notify the former owner, by registered mail or certified mail sent to
212212 the former owner's mailing address on the tax bill, that the former owner may be
213213 entitled to a share of the proceeds of a future sale. The county shall send to the former
214214 owner the proceeds identified in sub. (3) (c) minus any delinquent taxes, interest, and
215215 penalties owed by the former owner to the county in regard to other property and
216216 minus the actual costs of the sale as specified under sub. (3) (a) plus all amounts
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243243 SECTION 10 SENATE BILL 918
244244 disbursed under sub. (3) (b) and (bm) and plus the amount of property taxes that
245245 would have been owed on the property for the year during which the sale occurs if
246246 the county had not acquired the property. If the county is unable to locate the former
247247 owner within 5 years following the mailing of the notice under this subsection, the
248248 former owner forfeits the right to any remaining equity in the property.
249249 SECTION 11. 75.36 (2m) (b) of the statutes is created to read:
250250 75.36 (2m) (b) If the payment to the former owner under par. (a) is returned
251251 to the county or otherwise not claimed by the former owner within one year following
252252 the mailing of the proceeds under par. (a), the payment shall be considered
253253 unclaimed funds and disposed of pursuant to s. 59.66 (2). Neither the former owner
254254 nor any person making claim for any funds under this section is entitled to interest
255255 on sums owed by the county under this section.
256256 SECTION 12. 75.36 (3) (a) 2. of the statutes is amended to read:
257257 75.36 (3) (a) 2. The amount of reasonable and customary real estate agent or
258258 broker fees or other actual costs paid for selling the property.
259259 SECTION 13. 75.36 (3) (a) 3. of the statutes is amended to read:
260260 75.36 (3) (a) 3. All amounts of unpaid general property taxes, interest,
261261 penalties, special assessments, special charges and special taxes levied against the
262262 property sold, including interest and penalties imposed under s. 74.47 previously
263263 paid to taxing jurisdictions by the county.
264264 SECTION 14. 75.36 (3) (bm) of the statutes is repealed.
265265 SECTION 15. 75.69 (2) of the statutes is amended to read:
266266 75.69 (2) This section shall not apply to exchange of property under s. 59.69 (8),
267267 to withdrawal and sale of county forest lands, nor to the sale or exchange of lands to
268268 or between municipalities or to the state.
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296296 SECTION 16
297297 SENATE BILL 918
298298 SECTION 16.0Initial applicability.
299299 (1) This act first applies to properties sold on the effective date of this
300300 subsection.
301301 (END)
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