Tools for Managing Delinquent Taxes

Three provisions in Wisconsin statutes provide assistance to local governments for management of delinquent property taxes. These tools can help local governments accomplish environmental cleanup and redevelopment of contaminated properties that are tax delinquent.

Cancellation of Delinquent Real Property Taxes on Property Contaminated by Hazardous Substances

s. 75.105, Wis. Stats. [exit DNR]

• Counties or the City of Milwaukee can cancel all or a portion of unpaid property taxes on a contaminated property. The party requesting the tax cancellation must have a written agreement approved by the Department of Natural Resources regarding clean up of the contamination.
• You may use Section 5 in the Technical Assistance and Environmental Liability Clarification Request (Form 4400-237) [PDF, 70KB] to request the agreement. Applicants should include the appropriate fee, documentation and a copy of the draft agreement.
• Model s.75.105 Agreement [PDF 66KB]

Assignment of Foreclosure Judgment on Property Contaminated by Hazardous Substances

s. 75.106, Wis. Stats. [exit DNR]

• Counties or the City of Milwaukee can assign property foreclosure judgments to parties interested in taking title to the property when using "in rem" foreclosure (through the courts). The party requesting assignment of the foreclosure judgment must have a written agreement approved by the Department of Natural Resources regarding clean up of the contamination.
• You may use Section 5 in the Technical Assistance and Environmental Liability Clarification Request (Form 4400-237) [PDF, 70KB] to request the agreement. Applicants should include the appropriate fee, documentation and a copy of the draft agreement.
• Model s.75.106 Agreement [PDF 41KB]

Acquisition Through the County

s. 75.17, Wis. Stats.[exit DNR]

• A local government unit can acquire a contaminated property by requesting that the county take the tax deed and transfer it to the local government. The local government qualifies for liability protection regarding the contamination.
• Liability Protection for Local Government Units & Economic Development Corporations (RR-579) [PDF 310KB]

If you have questions regarding these tools, please contact:

Dan Kolberg