The Wisconsin State Legislature passed legislation relating to the county sale of tax-deeded lands. The bill, AB 969, awaits the governor’s signature.
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It renumbers 75.35(2)(a) of the statutes to 75.35(2)(am) and amends it to read, “Subject to this section and ss. 75.36 and 75.69, any county shall have the power to sell and convey its tax-deeded lands in such a manner and upon such terms as the county board may by ordinance or resolution determine.”
It creates 75.35(2)(ag), which states, “If a property or the county is subject to s.66.1006, the county shall publish the notice under s. 75.69(1) no later than 240 days after the date of approval from the department of natural resources or, beginning in 2026, no later than 180 days after the date of such approval.”
It amends 75.25(2)(d) to authorize county boards to sell and convey their tax-deeded lands by open or closed bid, as well as engage a licensed real estate broker and salesperson to assist in selling the land.
Among other things, it amends 75.35(3) to read, “the county board shall, for single-family, owner-occupied properties, and may, at its option, for all other properties, by ordinance provide that prior to the sale of tax-deeded lands, the former owner who lost his or her title through delinquent tax collection enforcement procedure, or his or her beneficiaries, as defined in s. 851.03, or heirs as defined in s. 851.09, shall have the right to purchase such lands by paying the county for all costs and expenses incurred as provided under s. 75.36(3)(a), plus the amount of property taxes that would have been owed on the property for the year during which the purchase occurs if the county had not acquired the property and plus amounts to satisfy any other liens at the time of the foreclosure including the county’s costs associated with the repurchase. Any sale under such ordinance is exempt from any or all provisions of s. 75.69.”
No county would be liable for acts or omissions associated with the sale of the property, including the process by which the property is sold, absent fraud.
The bill amends s. 75.69(1) of the statutes to state, “Except as provided in sub. (1m), no tax delinquent real estate acquired by a county may be sold unless the sale and appraised value of such real estate has first been advertised by publishing on the county’s website and either by publication of a class 1 notice, under ch. 985, or by advertising on a multiple listing service, no later than 240 days after the county acquires the property.”
It adds s. 75.69(1m)(am) to state, “Except as provided in subd. 2 and par. (an), if a property is located in a county with a population of 750,000 or more, the county shall advertise the sale of tax delinquent real estate by publishing on the county’s website and either by publication of a class 1 notice, under ch. 985, or by advertising on a multiple listing service, no later than 36 months after the day in which the county acquires the property, if the property meets any of the following criteria:
- “The property is a vacant lot.
- “The property is residential property occupied by a person with a valid ownership or leasehold interest in the property at the time of foreclosure but is not a single-family, owner-occupied residence.
- “The property is eligible for a redemption or sale-back process authorized by s. 75.35(3), and set by local ordinance.
- “The property qualifies for a raze order under s. 66.0413.
- “The county has estimated a cost of repair that exceeds 50 percent of the property’s assessed value in the year of the county’s acquisition.
- “The delinquent property taxes, fees, interest, penalties, and other costs under s. 75.36(3)(a) exceed 75 percent of the property’s assessed value in the year of the county’s acquisition.
- “The county has reason to believe the property is a brownfield pursuant to s. 238.13(1)(a).
- “The property is subject to s. 75.106.”
The county would have to attempt to sell property located in a county with a population of 750,000 or more and obtained by foreclosure prior to the effective date of the bill within 10 years after the effective date of the bill. If the property remains unsold after the expiration of the 10-year period, the county would have to advertise the sale of the property by publishing on the county’s website and either by publication of a class 1 notice, under ch. 985, or by advertising on a multiple listing service, within 180 days after the expiration of the 10-year period, regardless of the property type.
The bill first applies to tax deeded lands that a county acquired or will acquire on or after April 1, 2022. With regard to tax deeded lands that a county acquired prior to the effective date of the bill, the act would apply to the notice of tax deeded lands on the date that is 240 days after the effective date of the bill.
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