Unit 5: Taxation and Transfer Fees in WI Flashcards
What are property taxes?
The amount charged yearly against assessed value of a property
What if a homeowner is late in paying property tax?
There will be an Interest rate of 1% per month/penalties up to 0.5% per month
What happens to property taxes during a property transfer?
Seller is responsible for 1/12th of yearly bill leading to transfer date + month of transfer if occurred after 15th of the month
What is the transfer fee?
An amount charged at a rate of 30 cents per $100 of value for transfer
Who is responsible for paying transfer fee to county Register of Deeds office?
The seller (grantor), along with filing an Electronic Real Estate Transfer Return form before conveyance
What if someone lies about the transfer fee amount?
Fined up to $1,000, up to a year in jail or both
Who has it’s own assessor?
Each county, and each tax district
What do assessor’s do?
Base estimate of assessed value on best information they can obtain, including standards set in WI property assessment manual + outside factors
What is the process of equalization?
Applies adjustment rate to convert total assessed values of property in each municipality within a tax jurisdiction to uniform level
Who determines equalized values in attempt to maintain equity between municipalities and counties?
State Department of Revenue
How are tax rates determines?
based on total tax levy the jurisdiction needs, divided by total assessed value
How are individual tax bills assessed?
Multiplying the property assessed value by jurisdiction tax rate
When are WI tax bills mailed?
3rd Monday in December, due in full by Jan 31/ in 2 installments, Jan 31 and Jul 31
What is the priority of tax liens?
1st
When is a tax certificate issued for all county delinquent?
Sep 1st
What is a tax certificate?
Annually produced list of properties whose owners are delinquent on tax payments
What is a lien position?
The priority in which each lien against a property will be paid in event of a foreclosure
Which lien has priority over other liens?
Mortgage, tax, or special assessment liens
What is a construction lien?
Secures payment for value of labor and materials relating to construction, property improvements or repairs of real property
How do you place a construction lien?
- Notify homeowner of their lien rights within 10 days of date labor was performed/materials ordered.
- notify property owner of the intent to file a lien claim at least 30 days before filing.
- Lien claim must be within 6 months of completion of work
What is a mechanic lien?
Used in garage/shop in which employees perform alterations/repairs on personal property
How do you enforce construction/mechanic liens?
File foreclosure lawsuit. Judgment by court takes other liens into consideration and specifies amount to be paid
What is an assessed value?
The dollar amount determined by assessor, to which local tax rate is * to determine property tax owed
What is a general tax assessment?
The evaluation of a property value for tax purpose
What is equalization?
The process of applying an adjustment rate to convert assessed values for every town, city, village in a county to uniform level
What is a lien?
Creditors legal right to have debt paid out of property of a defaulting debtor, usually court sale
What is a tax lien?
A lien imposed for nonpayment of taxes
What is redemption?
2 year period where a property owner who avoids taxes may repay outstanding tax amount+interest/penalties in full
What is a mortgage lien?
Created when mortgage is signed; places property as security for repayment of loan
What is judgment?
When WI lien is being enforced, the court’s order pertaining to what claimants are
What is a judgment lien?
Claim on behalf of plaintiff, placed by court when monetary damages are awarded
