2003 - 2004 LEGISLATURE
December 12, 2003 - Introduced by Representatives Berceau, Plouff, Pocan,
Black, Krug, J. Lehman, Gottlieb, Gielow, Huber and Hebl, cosponsored by
Senator Risser. Referred to Committee on Financial Institutions.
1An Act to renumber and amend
77.21 (1) and 77.22 (1); and to create
(1) (b) and 77.22 (1) (c) of the statutes; relating to: conveying real property for
3real estate transfer fee purposes.
Analysis by the Legislative Reference Bureau
Under current law, a person who conveys real property to another must pay a
real estate transfer fee at the rate of 30 cents for each $100 of the property's value.
The person pays the fee to the register of deeds for the county in which the property
is located and files a return with the register of deeds which indicates, in part, the
value of the ownership interest transferred by the conveyance. Under current law,
a conveyance that occurs pursuant to a merger of corporations is exempt from the
real estate transfer fee. For purposes of imposing the real estate transfer fee, a
"conveyance" includes deeds and other instruments used to pass an ownership
interest in real property.
Under this bill, for purposes of imposing the real estate transfer fee, a
"conveyance" also includes a change of 50 percent or more in the ownership interest,
not including a merger, of a general partnership, limited liability partnership,
limited partnership, limited liability company, corporation, tax-option corporation,
nonprofit or nonstock corporation, or other association, if any such entity has assets
consisting of real estate.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB701, s. 1
77.21 (1) of the statutes is renumbered 77.21 (1) (intro.) and 2
amended to read:
(intro.) "Conveyance" includes deeds all of the following:
and other instruments for the passage of ownership interests in real 5
estate, including contracts and assignments of a vendee's interest therein, including 6
instruments that are evidence of a sale of time-share property, as defined in s. 707.02 7
(32), and including leases for at least 99 years but excluding leases for less than 99 8
years, easements and wills.
AB701, s. 2
77.21 (1) (b) of the statutes is created to read:
(b) A change of 50 percent or more in the ownership interest, not 11
including a merger, of a general partnership, limited liability partnership, limited 12
partnership, limited liability company, corporation, tax-option corporation, 13
nonprofit or nonstock corporation, or other association, if any such entity has assets 14
consisting of real estate.
AB701, s. 3
77.22 (1) of the statutes is renumbered 77.22 (1) (a) and amended 16
(a) There is imposed on the grantor of real estate a real estate transfer 18
fee at the rate of 30 cents for each $100 of value or fraction thereof on every 19
conveyance not exempted or excluded under this subchapter. In regard to land
20contracts the value is the total principal amount that the buyer agrees to pay the
21seller for the real estate. This fee
1(b) For a conveyance, as defined in s. 77.21 (1) (a), the fee imposed under par.
shall be collected by the register at the time the instrument of conveyance is 3
submitted for recording. Except as provided in s. 77.255, at the time of submission 4
the grantee or his or her duly authorized agent or other person acquiring an 5
ownership interest under the instrument, or the clerk of court in the case of a 6
foreclosure under s. 846.16 (1), shall execute a return, signed by both grantor and 7
grantee, on the form prescribed under sub. (2). The register shall enter the fee paid 8
on the face of the deed or other instrument of conveyance before recording, and, 9
except as provided in s. 77.255, submission of a completed real estate transfer return 10
and collection by the register of the fee shall be prerequisites to acceptance of the 11
conveyance for recording. The register shall have no duty to determine either the 12
correct value of the real estate transferred or the validity of any exemption or 13
exclusion claimed. If the transfer is not subject to a fee as provided in this 14
subchapter, the reason for exemption shall be stated on the face of the conveyance 15
to be recorded by reference to the proper subsection under s. 77.25.
AB701, s. 4
77.22 (1) (c) of the statutes is created to read:
(c) For a conveyance, as defined in s. 77.21 (1) (b), the fee imposed 18
under par. (a) shall be collected by the department of revenue at the time that the 19
instrument of conveyance is submitted for recording. At the time of submission, the 20
grantee or his or her duly authorized agent or other person acquiring an ownership 21
interest under the instrument shall execute a return, signed by both grantor and 22
grantee, on the form prescribed under sub. (2). The department of revenue shall 23
enter the fee paid on the face of the instrument of conveyance before recording, and 24
submission of a completed real estate transfer return and collection of the fee by the 25
department shall be prerequisites to acceptance of the conveyance for recording.
(1) This act first applies to a conveyance of real property occurring on the 3
effective date of this subsection.