LRB-2269/1
JK&MES:wlj:jf
2001 - 2002 LEGISLATURE
March 26, 2001 - Introduced by Representatives M. Lehman, Ward, Sykora,
Meyerhofer, Petrowski, Urban and Hahn. Referred to Committee on Ways
and Means.
AB244,1,2
1An Act to amend 71.91 (4); and
to create 71.91 (5) (dm) of the statutes;
relating
2to: tax warrants and liens on property.
Analysis by the Legislative Reference Bureau
Under current law, if a person who is liable to pay any income or franchise tax
to this state fails to pay such a tax, the amount of the unpaid tax becomes a lien on
the person's property. The lien remains in effect until the person pays the amount
of the unpaid tax. The department of revenue (DOR) must file a tax warrant with
the circuit court clerk in the county where the person's property is located. The clerk
files the warrant and enters it on the court's judgment and lien docket. The clerk also
charges DOR a fee for filing the warrant. The tax warrant directs the county sheriff
to sell as much of the person's property within the county as necessary to pay the
amount of the unpaid tax.
Under this bill, a lien on a person's property, related to unpaid income or
franchise taxes, remains in effect for 20 years or until the person pays the amount
of the unpaid tax, whichever comes first. DOR may renew the lien by filing a new
warrant with the circuit court clerk in the county where the person's property is
located. Under the bill, the clerk does not charge DOR a fee for filing a warrant to
renew a lien. The renewed lien remains in effect for 20 years or until the person pays
the amount of the unpaid tax, whichever comes first.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB244, s. 1
1Section
1. 71.91 (4) of the statutes is amended to read:
AB244,2,142
71.91
(4) Unpaid tax is perfected lien on property. If any person liable to pay
3any income or franchise tax neglects, fails
, or refuses to pay the tax, the amount,
4including any interest, addition to tax, penalty
, or costs, shall be a perfected lien in
5favor of the department of revenue upon all property and rights to property. The lien
6is effective at the time taxes are due or at the time an assessment is made and shall
7continue until the liability for the amount to be paid or for the amount so assessed
8is satisfied
, except that liens related to warrants entered under sub. (5) (b) 1. after
9the effective date of this subsection .... [revisor inserts date], shall continue for 20
10years, subject to renewal under sub. (5) (dm), or until the liability for the amount to
11be paid or for the amount so assessed is satisfied, whichever comes first. The
12perfected lien does not give the department of revenue priority over lienholders,
13mortgagees, purchasers for value, judgment creditors
, and pledges whose interests
14have been recorded before the department's lien is recorded.
AB244, s. 2
15Section
2. 71.91 (5) (dm) of the statutes is created to read:
AB244,3,316
71.91
(5) (dm) The department of revenue may renew a lien that expires after
1720 years, as specified under sub. (4), by filing a warrant as provided under par. (ar)
18within 6 months from the date that the lien expires. The clerk of circuit court shall
19enter the warrant as provided under par. (b) 1., except that no fee shall be assessed
20for any warrant filed under this paragraph. A lien that is the subject of a warrant
21filed under this paragraph retains its priority for payment under the original
1warrant and remains in effect for 20 years, subject to renewal under this paragraph,
2or until the liability for the amount to be paid or for the amount so assessed is
3satisfied, whichever comes first.
