Committee sends tax-deed ordinance back for clarification after Supreme Court-driven rule changes

The Sawyer County Land, Water and Forest Resources Committee returned a proposed tax-deed ordinance to staff for clarification and explicit inclusion of a three-year acquisition timeframe after a staff presentation that cited recent court and state-law changes affecting tax-deed sales.

The committee’s review followed a presentation by staff explaining how the U.S. Supreme Court decision in Tyler v. Hennepin County changed whether counties may retain sale proceeds above back taxes and how the state subsequently passed legislation that requires counties to make a reasonable attempt to locate prior owners and provide a repurchase right in some cases. Committee members heard that counties statewide are updating ordinances to incorporate those statutory requirements.

County staff summarized the ordinance’s main procedural points as currently drafted: within 20 days of acquiring a tax deed the county must notify the former owner by certified or registered mail that they may be entitled to proceeds from a future sale; the county must determine an appraised value within 120 days of acquisition; owner-occupied single-family residences have a statutorily required repurchase right with specified timelines; the county must publish availability for sale after 240 days of acquisition (180 days for properties acquired on or after Jan. 1, 2026) either via a class 1 notice or by listing with a licensed real estate broker on a multiple listing service; and the treasurer must attempt to return any proceeds to the former owner or follow Wisconsin Stat. §59.66 procedures for unclaimed funds.

Staff also told the committee a class-action filing had been made recently that seeks recovery of proceeds counties previously retained. The presenter summarized the effect: “Previously when the county sold the tax deed property ... the county was able to retain those funds, and the county is no longer able to do that, or at least you have to make an attempt to track down the prior owner, and return those funds to that individual.”

Committee members asked whether appraised values should be set by a certified appraiser or by treasurer staff using fair-market data; staff said either approach is allowed but many counties use internal valuation to avoid appraisal costs. The treasurer confirmed the county historically waited five years to acquire tax deed properties but staff recommended aligning the ordinance with state statute and a three-year acquisition timeline. One committee member moved to have staff add the three-year acquisition timeframe explicitly in the ordinance before bringing it back; a second was made and the motion carried on a voice vote.

The committee did not adopt the ordinance at this meeting; staff will revise the draft to insert the three-year timeline and return the ordinance for further committee review.