Dunn County sells half-acre parcel in Town of Hay River for $18.07
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By LeAnn R. Ralph
MENOMONIE — Although Jeffrey and Kelley Lake believed a half-acre parcel was part of a 40-acre parcel they already owned in the Town of Hay River, it was not part of the parcel.
Dunn County took possession of the half-acre parcel in 1989 through the “in rem” foreclosure process, and it is likely that the parcel was the result of property description discrepancies, said Barbara Fagan, assistant corporation counsel, at the Dunn County Planning, Resources and Development Committee’s June 28 meeting.
Jeffrey and Kelley Lake have asked to purchase the parcel, and conveying the parcel to the Lakes seems like a logical decision since the parcel is landlocked, there are issues with the property description, and the original intent was that the half-acre should be part of the 40-acre parcel, she said.
In addition, since Act 216 was signed into law this spring, the county can only keep from the proceeds of the sale the property taxes owed on a tax foreclosure parcel. Dunn County would have to return any excess money from the sale, minus the taxes owed and costs, to the original property owner, or if the original property owner is not known, to hold the money for five years, Fagan said.
Since the county has owned the half-acre parcel since 1989 and it would have little worth to another buyer, Fagan recommended selling the parcel for the back taxes owed in 1989, which was $18.07.
The Dunn County Planning, Resources and Development Committee unanimously approved selling the half-acre parcel to Jeffrey and Kelley Lake for $18.07.
Act 216
The Wisconsin Legislature enacted a law on March 31, 2022, that dramatically changed the allocation of proceeds from the sale of property taken through the tax foreclosure process, Fagan said.
Before passing the legislation, the Wisconsin Counties Association was not asked about any implications for the county, she said.
Prior to Act 216, counties retained all the proceeds from a foreclosure sale, unless a former owner asked for a “homestead credit,” which could be requested within 60 days of the date of the sale for a property that was used as a main place of dwelling, Fagan said.
Requests for the homestead credit rarely happened, she said.
The homestead credit allowed the former landowner to ask for the proceeds of the sale, minus the back property taxes owed and the costs associated with selling the property, Fagan said.
Much of the foreclosed property in Dunn County is land that does not have a residence, so the sale of the property would not have qualified for homestead credit, she said.
Act 216 extends the homestead credit to all sales of land taken through the tax foreclosure process, Fagan said.
Under Act 216, the county is required to give any money from the sale, minus the back taxes and the costs, to the prior owner of the property. If the county does not know who the prior property owner is, the county must make an effort to find the owner for five years and must hold onto the money during that time period, she said.
Revenue
In 2020, Dunn County received $100,000 in revenue from the sale of tax foreclosure properties, Fagan said.
Act 216 will change the recommendations for the sale of tax foreclosure property, and it will affect the county’s revenue, she said.
Since there is now no advantage to taking the highest bid on a tax foreclosed property, are there circumstances that would allow taking a lower bid? asked Gary Bjork, county board supervisor from Colfax and a member of the PR&D committee.
The PR&D committee has taken all kinds of circumstances and situations under consideration when considering bids for tax foreclosure property, Fagan said.
There is now discussion among all 72 counties in the state about what duty do the counties have, under Act 216, to sell the property for the highest bid, she said.
Excess money from tax foreclosure sales in which the property owner is not known would require Dunn County to maintain accounts from each of the sales for five years, Fagan said.
There is discussion about not doing all of the leg-work required for tax foreclosure sales when the only revenue the county would receive is the back taxes, she said.
“The law is baffling. I can’t believe no one consulted the Wisconsin Counties Association,” said Tom Quinn, county board supervisor from Downing and chair of the PR&D committee.
The Wisconsin Counties Association was not consulted. The impetus for the law was realtors, Fagan said.
