2005 - 2006 LEGISLATURE
May 12, 2005 - Introduced by Representatives Berceau, Albers, Hahn, Black and
Lehman, cosponsored by Senator Lassa. Referred to Committee on Financial
1An Act to renumber and amend
77.21 (1) and 77.22 (1); and to create
(1) (b), 77.22 (1) (c), 77.25 (1m) and 77.26 (9) of the statutes; relating to:
3conveying real property for real estate transfer fee purposes and providing a
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 the purpose of submitting a real estate transfer fee return,
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. However, a conveyance as described in this
paragraph is exempt from the imposition of the real estate transfer fee.
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:
AB423, 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.
AB423, s. 2
77.21 (1) (b) of the statutes is created to read:
(b) A change of 50 percent or more within any 12-month period in the 11
ownership interest, not including a merger, of a general partnership, limited liability 12
partnership, limited partnership, limited liability company, corporation, tax-option 13
corporation, nonprofit or nonstock corporation, or other association, if any such 14
entity has assets consisting of real estate.
AB423, 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 20
contracts the value is the total principal amount that the buyer agrees to pay the
seller for the real estate. This fee All conveyances shall be recorded with the register
2as provided under this subsection.
3(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 5
submitted for recording. Except as provided in s. 77.255, at the time of submission 6
the grantee or his or her duly authorized agent or other person acquiring an 7
ownership interest under the instrument, or the clerk of court in the case of a 8
foreclosure under s. 846.16 (1), shall execute a return, signed by both grantor and 9
grantee, on the form prescribed under sub. (2). The register shall enter the fee paid 10
on the face of the deed or other instrument of conveyance before recording, and, 11
except as provided in s. 77.255, submission of a completed real estate transfer return 12
and collection by the register of the fee shall be prerequisites to acceptance of the 13
conveyance for recording. The register shall have no duty to determine either the 14
correct value of the real estate transferred or the validity of any exemption or 15
exclusion claimed. If the transfer is not subject to a fee as provided in this 16
subchapter, the reason for exemption shall be stated on the face of the conveyance 17
to be recorded by reference to the proper subsection under s. 77.25.
AB423, 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 instrument of 20
conveyance shall be submitted to the register for recording. At the time of 21
submission, the grantee or his or her duly authorized agent or other person acquiring 22
an ownership interest under the instrument shall execute a return, signed by both 23
grantor and grantee, on the form prescribed under sub. (2). Submission of a 24
completed real estate transfer return shall be a prerequisite to acceptance of the 25
conveyance for recording. A return submitted under this paragraph shall identify
the county and municipality in which each parcel of real property that is the subject 2
of the conveyance is located and shall state separately the value of each such parcel.
AB423, s. 5
77.25 (1m) of the statutes is created to read:
As defined under s. 77.21 (1) (b).
AB423, s. 6
77.26 (9) of the statutes is created to read:
Any person who fails to record a conveyance under s. 77.22 (1) (c) 7
within 90 days from the date of the transition that brings the total change of 8
ownership interest to at least 50 percent may, for each offense, be fined an amount 9
equal to 10 percent of the value of the conveyance, but not less than $1,000 nor more 10
than $10,000, or imprisoned in the county jail not more than one year, or both.
(1) This act first applies to a conveyance of real property occurring on the 13
effective date of this subsection.