Jefferson County updates tax-foreclosure ordinance and adopts revised foreclosure policy after state law changes

Jefferson County supervisors on Dec. 5 adopted changes to the county's handling of tax-foreclosed properties, citing recent state legislation that altered who may repurchase foreclosed homes and how surplus proceeds are distributed.

Finance committee staff told the board that 2023 Wisconsin Act 207 requires the county to offer repurchase rights only to former owners of single-family owner-occupied homes (and their heirs or beneficiaries) and to require repayment of any liens that existed before foreclosure. Staff said that requirement will make repurchase "less financially feasible for most homeowners." The staff report also described changes expanding entitlement to surplus proceeds and revised procedures for distributing those funds.

The board voted to repeal and replace the county's existing ordinance on tax-foreclosed lands (Ordinance 2024-15) and to adopt a rewritten real estate tax foreclosure policy intended to bring Jefferson County into compliance with the state statute. The ordinance was moved by Mr. Grama and seconded by Mr. Jayco; the policy resolution was moved by Mr. Drainas and seconded by Mr. Jaekel. Both measures were forwarded to the board after finance committee review and were approved on voice votes.

County staff provided a fiscal note referencing Wisconsin Stat. 75.36 and said counties are no longer eligible to retain amounts received from sales of tax-deeded properties in excess of delinquent taxes, interest and penalties less related expenses. The fiscal note explained that this limits counties' ability to keep surplus sale proceeds and requires updated procedures for distribution.

Board members did not request additional amendments during the meeting. The ordinances will appear in the county's official records and implement the state-mandated changes affecting repurchase rights, lien satisfaction requirements, and surplus-proceeds distribution.