SB87: Bill Text

LRB-1154/1

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2009 - 2010 LEGISLATURE

2009 Senate BILL 87

February 25, 2009 - Introduced by Senators Lassa, Hansen, Vinehout, Lehman, Darling, Coggs, Taylor and Robson, cosponsored by Representatives Berceau, Hebl, Hintz, A. Ott, Fields, Young and A. Williams. Referred to Committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue.

SB87,1,3 An Act to amend 234.625 (1) of the statutes; relating to: increasing the maximum annual loan amount under the property tax deferral loan program of the Wisconsin Housing and Economic Development Authority.

Analysis by the Legislative Reference Bureau

Under current law, a homeowner 65 years of age or older with total household income of no more than $20,000 may annually apply to the Wisconsin Housing and Economic Development Authority for a loan to pay all or a portion of the individual's current property taxes and special assessments, and any interest or penalties on delinquent property taxes. The maximum annual loan amount is $2,500. This bill increases the maximum annual loan amount to $3,525.

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:

SB87, s. 1 Section 1. 234.625 (1) of the statutes is amended to read:

SB87,2,10 234.625 (1) The authority shall enter into agreements with participants and their co-owners to loan funds to pay property taxes and special assessments on their qualifying dwelling units. The maximum loan under ss. 234.621 to 234.626 in any one year is limited to the lesser of $2,500 $3,525 or the amount obtained by adding the property taxes levied on the qualifying dwelling unit for the year for which the loan is sought, the special assessments levied on the dwelling unit, and the interest and penalties for delinquency attributable to the property taxes or special assessments. Loans shall bear interest at a rate equal to the prime lending rate at the time the rate is set, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 1%. The executive director shall set the rate no later than October 15 of each year, and that rate shall apply to loans made in the following year.

SB87, s. 2 Section 2. Initial applicability.

SB87,2,14 (1) Property tax deferral loans. This act first applies to applications under section 234.623 (1) of the statutes that are pending on the effective date of this subsection.

SB87,2,15 (End)