Sawyer County committee approves ordinance amendment and new fees to update tax-deed process under Acts 206/207

The Sawyer County Land, Water, Forest Resources Committee voted to approve an amendment to the county’s taxation ordinance (Chapter 24) and an associated resolution that implements changes required by Wisconsin Acts 206 and 207.

The amendment requires the County Treasurer and the Land, Water, Forest Resources Committee to act “as expeditiously as allowed under Wisconsin law” to acquire tax title, and sets a maximum three-year timeline from issuance of a tax certificate for the county to proceed to acquire tax title unless a longer period is required by law. Committee members voted to send the ordinance amendment and resolution to the County Board for final approval.

The nut of the change is to align local practice with recent state law. Committee members and staff discussed how the county previously waited up to five years before taking tax title for many properties and said shortening the timeline should reduce backlog and preserve potential resale value.

County Treasurer presentation and parcel list

The Treasurer presented a list of 37 tax-delinquent parcels proposed for sale and asked the committee to confirm the minimum bid amounts. The treasurer said he used assessed fair-market values from the county’s Novus software as the initial minimum amounts and warned that some parcels are unlikely to sell because of condition or access. “Our goal is to at least get what we have cost involved in these,” the Treasurer said. The committee asked staff to circulate the parcel list by email before the May meeting so members could review specific parcels and recommend adjustments.

New administrative fees and proceeds distribution

Under the approved language included in the resolution, the committee approved new administrative fees tied to the tax-certificate and sale processes: a $300 administrative fee assessed when the county takes a property (tax-certificate process) and an $1,800 administrative fee assessed when a property is put up for sale. The ordinance text also requires that recorded sale proceeds first cover back taxes, interest, penalties and the county’s allowed administrative costs; any proceeds above those amounts must be returned to the prior owner in accordance with Act 207.

Committee members noted that Act 207 changes the distribution of sale proceeds compared with prior practice. One committee member summarized the practical effect: counties will retain money to cover taxes and documented costs, but net proceeds above that must be returned to prior owners.

Legal exposure and background

Staff told the committee Sawyer County is among counties reviewing these changes in response to a legal trend stemming from the Tyler v. Hennepin case; they said the state statute changes reflect that litigation and noted that counties in Wisconsin have been named in class-action litigation concerning prior tax-deed practices. The committee heard that insurers have been engaged to provide defense in related claims.

Next steps

The treasurer will refine minimum-bid recommendations and circulate the parcel list to committee members ahead of the May meeting. The ordinance amendment and the accompanying resolution will go to the County Board for final action.

Votes at a glance

- Motion to approve amendment to Sawyer County Ordinance Chapter 24 and associated resolution: Motion made and seconded; recorded voice vote: “Aye” — motion carried. (Committee vote count not specified in transcript.)