77.16(12)
(12) The owner shall not be liable for payment of a penalty if declassification is a result of the owner's failure or refusal to renew the contract at the end of the contract period.
77.16(13)
(13) Any decision made by the department under this section is subject to review under
ch. 227.
77.16(14)(a)(a) On and after July 20, 1985, no person may apply to the department to place any land under this section.
77.16(14)(b)
(b) On and after January 1, 1986, the department may not act on any application under this section, issue any order placing land under this section or enter into a renewal of any agreement under this section.
77.16 Cross-reference
Cross Reference: See also ch.
NR 302.03, Wis. adm. code.
77.16 Annotation
Detached parcels of less than 40 acres are eligible for entry under the woodland tax law. 58 Atty. Gen. 8.
77.17
77.17
Contracts for land in the lower Wisconsin state riverway. An owner of timber that is exempt under
s. 30.44 (3) (c) 1. shall comply with a rule regulating timber cutting and harvesting promulgated under
s. 30.42 (1) (d):
77.17(2)
(2) If the owner agrees to modify the contract entered into under
s. 77.03 or
77.16 (4) to require compliance with the rules.
77.17 History
History: 1989 a. 31.
REAL ESTATE TRANSFER FEE
77.21
77.21
Definitions. In this subchapter:
77.21(1)
(1) "Conveyance" includes deeds and other instruments for the passage of ownership interests in real estate, including contracts and assignments of a vendee's interest therein, including instruments that are evidence of a sale of time-share property, as defined in
s. 707.02 (32), and including leases for at least 99 years but excluding leases for less than 99 years, easements and wills.
77.21(1e)
(1e) "Mergers of corporations" means the merger or combination of 2 or more corporations, nonstock corporations, limited liability companies, or limited partnerships, or any combination thereof, under a plan of merger or a plan of consolidation permitted by the laws that govern the entities.
77.21(1k)
(1k) "Partition" means the division among several persons of real property, including noncontiguous real property, that belongs to them as co-owners.
77.21(1m)
(1m) "Real estate" includes, but is not limited to, fixtures; roots, vines and trees of perennial crops; stock in a cooperative building; improvements on leased land; timber; and minerals.
77.21(2)
(2) "Register" means the register of deeds for the county in which particular real estate is located.
77.21(3)(a)
(a) In the case of any conveyance not a gift, the amount of the full actual consideration paid therefor or to be paid, including the amount of any lien or liens thereon; and
77.21(3)(b)
(b) In case of a gift, or any deed of nominal consideration or any exchange of properties, the estimated price the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and at prevailing general price levels.
77.21 Cross-reference
Cross Reference: See also ch.
Tax 15, Wis. adm. code.
77.21 Annotation
A memorandum announcing a reorganization of a land-owning partnership into a limited liability company and that the LLC was now the owner of the real estate was a document intended to transfer title to real estate. The receipt by members of ownership interests in the LLC was for value so that there was a conveyance under sub. (1) subject to taxation under s. 77.22. Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.22
77.22
Imposition of real estate transfer fee. 77.22(1)
(1) There is imposed on the grantor of real estate a real estate transfer fee at the rate of 30 cents for each $100 of value or fraction thereof on every conveyance not exempted or excluded under this subchapter. In regard to land contracts the value is the total principal amount that the buyer agrees to pay the seller for the real estate. This fee shall be collected by the register at the time the instrument of conveyance is submitted for recording. Except as provided in
s. 77.255, at the time of submission the grantee or his or her duly authorized agent or other person acquiring an ownership interest under the instrument, or the clerk of court in the case of a foreclosure under
s. 846.16 (1), shall execute a return, signed by both grantor and grantee, on the form prescribed under
sub. (2). The register shall enter the fee paid on the face of the deed or other instrument of conveyance before recording, and, except as provided in
s. 77.255, submission of a completed real estate transfer return and collection by the register of the fee shall be prerequisites to acceptance of the conveyance for recording. The register shall have no duty to determine either the correct value of the real estate transferred or the validity of any exemption or exclusion claimed. If the transfer is not subject to a fee as provided in this subchapter, the reason for exemption shall be stated on the face of the conveyance to be recorded by reference to the proper subsection under
s. 77.25.
77.22(2)
(2) The secretary of revenue shall prescribe the form required under
sub. (1). The form shall include an application for a credit under
s. 79.10 (5) and shall provide for the submission of the following:
77.22(2)(a)
(a) The value of the ownership interest transferred by the instrument of conveyance.
77.22(2)(b)
(b) The amount of the fee payable under this section.
77.22(2)(e)
(e) The financing terms under which agricultural land is transferred that are relevant to determining only the value of the property.
77.22(2)(f)
(f) Any other information the secretary requires.
77.22 Annotation
The transfer by all owners of property held as a in tenancy in common to a partnership consisting of all the original tenants in common was a taxable conveyance. DOR v. Mark,
168 Wis. 2d 288,
483 N.W.2d 302 (Ct. App. 1992).
77.22 Annotation
A memorandum announcing a reorganization of a land-owning partnership into a limited liability company and that the LLC was now the owner of the real estate was a document intended to transfer title to real estate. The receipt by members of ownership interests in the LLC was for value so that there was a conveyance under s. 77.21 (1) subject to taxation under sub. (1). Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.23
77.23
Disposition of fees and returns. On or before the 15th day of each month the register shall submit to the county treasurer transfer fees collected together with the returns filed in the office during the preceding month for the treasurer's transmission to the department of revenue under
s. 77.24 and shall submit to the county treasurer, or to the city treasurer if the property is located in a city that collects taxes under
s. 74.87, all applications for credits under
s. 79.10 (5) that the county register of deeds receives during the preceding month.
77.24
77.24
Division of fee. Twenty percent of all fees collected under this subchapter shall be retained by the county and the balance shall be transmitted to the state. Remittances shall be made monthly by the county treasurers to the department of revenue by the 15th day of the month following the close of the month in which the fee was collected. The remittance to the department shall be accompanied by the returns executed under
s. 77.22.
77.24 History
History: 1977 c. 29;
1981 c. 20.
77.25
77.25
Exemptions from fee. The fees imposed by this subchapter do not apply to a conveyance:
77.25(2)
(2) From the United States or from this state or from any instrumentality, agency or subdivision of either.
77.25(2g)
(2g) By gift, to the United States or to this state or to any instrumentality, agency or subdivision of either.
77.25(2r)
(2r) Under
s. 236.29 (1) or
(2) or
236.34 (1) (e) or for the purpose of a road, street or highway, to the United States or to this state or to any instrumentality, agency or subdivision of either.
77.25(3)
(3) Which, executed for nominal, inadequate or no consideration, confirms, corrects or reforms a conveyance previously recorded.
77.25(4)
(4) On sale for delinquent taxes or assessments.
77.25(6)
(6) Pursuant to mergers of corporations.
77.25(6d)
(6d) Pursuant to partnerships registering as limited liability partnerships under
s. 178.40.
77.25(6m)
(6m) Pursuant to the conversion of a business entity to another form of business entity under
s. 179.76,
180.1161,
181.1161, or
183.1207, if, after the conversion, the ownership interests in the new entity are identical with the ownership interests in the original entity immediately preceding the conversion.
77.25(7)
(7) By a subsidiary corporation to its parent for no consideration, nominal consideration or in sole consideration of cancellation, surrender or transfer of capital stock between parent and subsidiary corporation.
77.25(8)
(8) Between parent and child, stepparent and stepchild, parent and son-in-law or parent and daughter-in-law for nominal or no consideration.
77.25(9)
(9) Between agent and principal or from a trustee to a beneficiary without actual consideration.
77.25(10)
(10) Solely in order to provide or release security for a debt or obligation.
77.25(11)
(11) By will, descent or survivorship.
77.25(12)
(12) Pursuant to or in lieu of condemnation.
77.25(13)
(13) Of real estate having a value of $100 or less.
77.25(14)
(14) Under a foreclosure or a deed in lieu of a foreclosure to a person holding a mortgage or to a seller under a land contract.
77.25(15)
(15) Between a corporation and its shareholders if all of the stock is owned by persons who are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings, if the transfer is for no consideration except the assumption of debt or stock of the corporation and if the corporation owned the property for at least 3 years.
77.25(15m)
(15m) Between a partnership and one or more of its partners if all of the partners are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the partnership.
77.25(15s)
(15s) Between a limited liability company and one or more of its members if all of the members are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the limited liability company.
77.25(16)
(16) To a trust if a transfer from the grantor to the beneficiary of the trust would be exempt under this section.
77.25(17)
(17) Of a deed executed in fulfillment of a land contract if the proper fee was paid when the land contract or an instrument evidencing the land contract was recorded.
77.25 Annotation
Corporate stock constitutes "actual consideration" under sub. (9). Gottfried, Inc. v. DOR,
145 Wis. 2d 715,
429 N.W.2d 508 (Ct. App. 1988).
77.25 Annotation
A principal/agent relationship for purposes of sub. (9) must be examined as of the date of the conveyance. Washington National Development Co. v. DOR,
194 Wis. 2d 567,
535 N.W.2d 71 (Ct. App. 1995).
77.25 Annotation
Exemptions are strictly construed against granting the exemption. While subs. (15m) and (15s) exempt transfers between family members and family business entities, they do not exempt transfers from one family business to another even though the same transaction, had it been completed in 2 separate transfers, would have been exempt. Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.255
77.255
Exemptions from return. No return is required with respect to conveyances exempt under
s. 77.25 (1),
(2r),
(4) or
(11) from the fee imposed under
s. 77.22. No return is required with respect to conveyances exempt under
s. 77.25 (2) unless the transferor is also a lender for the transaction.
77.26
77.26
Powers of investigation, additional fees, refunds, penalties. 77.26(1)(1) The department of revenue may examine any records of any party to a conveyance to determine the real estate transfer fee due and the accuracy of the return submitted.
77.26(2)
(2) If the department of revenue determines that the amount of the real estate transfer fee reported was in error or that an exemption was improperly claimed, the department shall compute the additional transfer fee to be paid by, or the amount of the overpayment of transfer fee to be refunded to, the grantor.
77.26(3)
(3) All additional assessments and claims for refund are subject to the applicable notice provisions and procedures for review, final determination, collection, interest and penalties provided for additional income or franchise tax assessments and claims for refund under
ch. 71.
77.26(4)
(4) The department of revenue shall collect additional real estate transfer fees and divide the amount collected with the appropriate county in the proportion under
s. 77.24.
77.26(5)
(5) In the case of overpayment of transfer fees by any grantor under
sub. (2), the department of revenue shall certify the overpayment to the department of administration for payment of the refund to the grantor.
77.26(6)
(6) The department of revenue shall notify the appropriate county treasurer of any refund paid by the state, and the appropriate county treasurer shall increase the county's next payment to the state to reimburse the state for the county's share of the refund.
77.26(7)
(7) No person may make additional assessments of transfer fees or claim a refund of excess transfer fees paid after 4 years have elapsed from the date the transfer fee was due under
s. 77.22.
77.26(8)
(8) If the department of revenue determines that the value reported on the return under
s. 77.22 is understated by 25% or more or that an exemption was improperly claimed under
s. 77.25, the department shall assess and collect a penalty of $25 or 25% of the additional fee due, whichever is greater, in the manner that additional transfer fees are collected.
77.26 History
History: 1983 a. 27;
1991 a. 39.
77.265
77.265
Confidentiality. The returns filed under this subchapter are privileged information except as follows:
77.265(1)
(1) The department of revenue shall distribute information from the returns, and a copy of each return, to local assessors.
77.265(2)
(2) The local assessor shall permit the inspection of all returns filed under this subchapter for property within any local unit of government for which property taxes are levied by the chief elected official, or a person designated by the official, of that unit upon the adoption of a resolution by the governing body of the unit directing the official to inspect the returns for the purpose of reviewing the basis upon which equalized values were established by the department of revenue under
s. 70.57, and the official or designee shall maintain the confidentiality of the returns.
