Taxation and Transfer Fees in Wisconsin

Question 1

Property Taxes

Answer 1

pay for services like the fire department, police, schools, and roadways—essential services and public works. Basically, everything that keeps a town running.

Question 2

Assessed Values

Answer 2

used to determine property taxes and calculate state aid for education, which is the second-largest revenue source for schools

Question 3

Transfer Fees

Answer 3

apply to nearly every real estate transaction in which real property is transferred from one entity to another—that’s not just sales, but any non-exempt transfer.

The grantor (or the seller) is responsible for paying transfer fees, and Wisconsin has the fee set at 30 cents for each $100 of the property’s value, which, in a sale transaction, would be the purchase price.

Question 4

Equalization

Answer 4

applies an adjustment rate (an equalization rate) to convert the total assessed values for each municipality within a tax jurisdiction (like towns and cities within a county) to a uniform level.

Question 5

Lien

Answer 5

a creditor’s legal right to have the debt paid out of a defaulting debtor’s property.

Question 6

Tax Lien

Answer 6

can attach to property for any type of taxes, including property taxes and income taxes.

To remove any tax lien, the tax payment must be paid in full, including any fees and penalties. This would be an example of an involuntary lien, but that doesn’t make it any less binding.

Question 7

Tax Certificate

Answer 7

Remember that property tax bills are due on January 31 of each year. If a Wisconsin property owner is delinquent on his property taxes, the county treasurer will issue a tax certificate on September 1 for all of the county’s delinquent parcels. The parcel’s appearance on the tax certificate is evidence of a tax lien upon the property. If your property is on the tax certificate, the county treasurer will send you a notice within 90 days of the certificate’s issuance

Question 8

Redemption

Answer 8

The issuance of a tax certificate starts the two-year period of redemption for the parcels on the list, wherein the property owner has the right to pay the delinquent taxes, plus any interest and penalties in full, and redeem (retain full ownership rights) the property, before the county can foreclose on the property.

Question 9

Mortgage Lien

Answer 9

created on the property used as collateral for a loan to purchase a home.

Question 10

Lien Position/Lien Priority

Answer 10

The attachment of the lien to the title also establishes the priority of the lien, with respect to any other liens on the property’s title

Question 11

Construction Lien

Answer 11

When work is performed on a property, such as construction, property improvements, or repairs, the workers and companies performing that work must be paid. If payment for such work is not made, this is issued

Question 12

Judgement

Answer 12

wherein any other existing liens and their position will be considered, with higher-priority liens (like tax or mortgage liens) being paid out first