LRB-3148/1
MDK:kjf:pg
2005 - 2006 LEGISLATURE
August 3, 2005 - Introduced by Senators Carpenter and Taylor, cosponsored by
Representative Albers. Referred to Committee on Housing and Financial
Institutions.
SB277,1,2
1An Act to amend 138.052 (5m) (b) 3. b. of the statutes;
relating to: payment of
2property taxes from residential mortgage escrow accounts.
Analysis by the Legislative Reference Bureau
Under current law, with certain exceptions, if a financial institution (a bank,
credit union, savings and loan association, savings bank, or mortgage banker)
requires an escrow to assure the payment of property taxes in connection with a
residential mortgage loan (generally, a loan secured by a first lien real estate
mortgage used to purchase a one-family to four-family dwelling that is used by the
borrower as a principal residence), the borrower may elect between various options
for payment of property taxes from the escrow account. Under one option, the
borrower may require the escrow agent to pay the property taxes directly by
December 31 if the escrow agent has received a tax statement for the property by
December 20.
This bill specifies that, if the escrow agent pays property taxes directly to a city
that, by its charter, may sell land for nonpayment of taxes and that is authorized to
collect the payment of property taxes directly, the payment must be made to and
received by the city treasurer on or before December 27 rather than December 31.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB277, s. 1
3Section
1. 138.052 (5m) (b) 3. b. of the statutes is amended to read:
SB277,2,5
1138.052
(5m) (b) 3. b. Pay the property taxes by December 31, if the escrow
2agent has received a tax statement for that property by December 20
, except that,
3if the escrow agent pays taxes under this subd. 3. b. to a city authorized to act under
4s. 74.87, the payment shall be made to and received by the city treasurer on or before
5December 27.
