SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 918
February 28, 2024 - Offered by Senator Stafsholt.
SB918-SSA1,1,6 1An Act to repeal 59.69 (8), 75.36 (3) (bm) and 75.69 (1m) (a); to renumber and
2amend
75.35 (2) (a), 75.35 (2) (e) and 75.36 (2m); to amend 75.35 (2) (title),
375.35 (2) (d), 75.35 (3), 75.35 (7), 75.36 (3) (a) 2., 75.36 (3) (a) 3., 75.69 (1) and
475.69 (2); and to create 75.35 (2) (ag), 75.36 (2k), 75.36 (2m) (b), 75.69 (1m)
5(am), 75.69 (1m) (an) and 75.69 (1n) of the statutes; relating to: the county sale
6of tax-deeded lands.
Analysis by the Legislative Reference Bureau
This bill makes changes to current law regarding the process by which a county
sells land it has acquired by a tax-deed for the enforcement and collection of
delinquent property taxes. The changes include the following:
1. Under current law, a county board is authorized to engage licensed real
estate brokers and salespersons to assist in selling tax-deeded land. Under the bill,
the county may sell such lands by open or closed bid.
2. Under current law, when selling tax-deeded land, the county may give
preference to the former owner or heirs of the former owner who wish to purchase
the land. Under the bill, the county must give preference not only to the former
owner or heirs but also to the beneficiaries of the former owner who wish to purchase
the land.

3. Except for counties with a population of 750,000 or more, current law
prohibits the sale of tax delinquent real property acquired by a county unless the sale
and appraised value of the property has first been advertised by publication of a class
3 notice. However, a county that enacts an ordinance giving preference to the former
owner or the heirs of the owner who wish to purchase the property is exempt from
the requirement that the sale must first be advertised by publishing a notice, if the
net proceeds from the sale are sufficient to pay all special assessments and special
charges on the property, including interests.
Under the bill, this exemption applies if the net proceeds from the sale are equal
to or exceed the amounts owed the county as delinquent taxes, interest, penalties,
and amounts associated with selling the property. The exemption also applies to a
county that enacts an ordinance that includes giving preference to the beneficiaries
of the former owner who wish to purchase the property and the net proceeds from the
sale are equal to or exceed the amounts owed the county as delinquent taxes,
interest, penalties, and amounts associated with selling the property.
4. In addition, under the bill, except for counties with a population of 750,000
or more, before the sale of tax-deeded property, the county must advertise the sale
by publishing on the county's website and either by publishing a class 1 notice or by
advertising on a multiple listing service, no later than 240 days after the county
acquires the property or, beginning in 2026, no later than 180 days after the county
acquires the property.
5. Under the bill, a county with a population of 750,000 or more, must advertise
the sale by publishing on the county's website and either by publishing a class 1
notice or by advertising on a multiple listing service, no later than 36 months after
the county acquires the property, if the property meets certain criteria, including
being a vacant lot or subject to a raze order.
6. Under current law, the net proceeds from the county's sale of the property
are determined by subtracting certain amounts from the sales price, such as the
amount of real estate agent or broker fees paid for selling the property. The bill
modifies current law by allowing the subtraction of reasonable and customary real
estate agent or broker fees or other actual costs paid for selling the property.
7. Under current law, if the county is unable to locate the former owner within
five years following the mailing of the notice, the former owner forfeits the right to
any remaining equity in the property. The bill replaces this provision with a
requirement that any remaining equity not claimed within one year be considered
unclaimed funds and disposed according to that process.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB918-SSA1,1 1Section 1. 59.69 (8) of the statutes is repealed.
SB918-SSA1,2 2Section 2. 75.35 (2) (title) of the statutes is amended to read:
SB918-SSA1,3,2
175.35 (2) (title) Power of county County required to sell arrange for the
2sale of
tax-deeded lands.
SB918-SSA1,3 3Section 3. 75.35 (2) (a) of the statutes is renumbered 75.35 (2) (am) and
4amended to read:
SB918-SSA1,3,195 75.35 (2) (am) Except as provided in s. Subject to this section and ss. 75.36 and
675.69, any county shall have the power to sell and convey its tax-deeded lands in
7such manner and upon such terms as the county board may by ordinance or
8resolution determine, including without restriction because of enumeration, sale by
9land contract, or by quitclaim or warranty deed with mortgage from vendee to secure
10any unpaid balance of the purchase price. Such mortgage may be foreclosed in the
11same manner as any other mortgage. The title to lands conveyed by land contract
12shall remain in the county until fully paid for and in the event of default in such
13payment the county may foreclose the land contract with costs and reasonable
14attorney fees. When such land contract runs to a person or private corporation, the
15lands therein conveyed shall be placed on the tax roll and be subject to taxation the
16same as though absolute title thereto was vested in the purchaser under such land
17contract. Such purchaser shall be liable to pay all taxes against such land and in the
18event of failure to make such payment the county may pay the same and add the sum
19so paid to the amount due on the land contract
.
SB918-SSA1,4 20Section 4. 75.35 (2) (ag) of the statutes is created to read:
SB918-SSA1,3,2421 75.35 (2) (ag) If a property or the county is subject to s. 66.1006, the county shall
22publish the notice under s. 75.69 (1) no later than 240 days after the date of approval
23from the department of natural resources or, beginning in 2026, no later than 180
24days after the date of such approval.
SB918-SSA1,5 25Section 5. 75.35 (2) (d) of the statutes is amended to read:
SB918-SSA1,4,16
175.35 (2) (d) The county board may delegate its power to manage and sell
2tax-deeded lands to a committee constituted of such personnel and in such manner
3and compensated at such rate as the county board may by ordinance determine,
4provided that the compensation and mileage of county board members serving on
5such committee shall be limited and restricted as provided in s. 59.13 (2), or the
6county board may delegate the power of acquisition, management and sale of
7tax-deeded lands or any part of such power to such officer and departments of the
8county as the county board may by ordinance determine. Such ordinance shall
9prescribe the policy to be followed in the acquisition, management and sale of
10tax-deeded land and shall prescribe generally the powers and duties of such
11committee, officers, departments, employees and agents. The county board is
12authorized to sell and convey its tax-deeded lands by open or closed bid or to engage
13licensed real estate brokers and salespersons to assist in selling such lands and pay
14a commission for such service and to advertise such sale in such manner as it deems
15proper. The county board may appropriate such sums of money as may be necessary
16to carry out the provisions of this section.