Wisconsin Administrative Code › Department of Revenue › Chapter Tax 14 - Homestead Credit › Section Tax 14.04 - Property taxes accrued

Current through June 24, 2024
(1) PURPOSE. This section clarifies the
			 meaning of "property taxes accrued" as the term applies to homestead credit
			 claims.
(2) DEFINITION. Under s.
			 71.52(7),
			 Stats., "property taxes accrued" means real or personal property taxes or
			 monthly parking permit fees under s.
			 66.0435(3)
			 (c), Stats., exclusive of special
			 assessments, delinquent interest and charges for service, levied under ch. 70,
			 Stats., on a homestead owned by a claimant or a member of the claimant's
			 household, less the tax credit, if any, afforded in respect of the property by
			 s.
			 79.10,
			 Stats. With respect to sub. (3) (e), "property taxes accrued" means the
			 property taxes accrued levied on the former homestead owned by the
			 claimant.
(3) QUALIFYING PROPERTY
			 TAXES.
(a) Property taxes shall be levied on
			 a homestead or former homestead to qualify as "property taxes accrued."Property
			 taxes are levied when the tax roll is delivered to the local treasurer for
			 collection, usually on or near December 15 of each year.
(b) The property taxes accrued on a homestead
			 or former homestead for the year to which a claim relates need not be paid
			 prior to filing a homestead credit claim. The fact that the property taxes
			 accrued on the homestead or former homestead are delinquent for years prior to
			 the year to which a claim relates does not disqualify the claimant.
(c) "Property taxes accrued" includes
			 personal property taxes assessed on a homestead or former homestead that is
			 constructed on leased land or assessed on a mobile home owned by the claimant
			 or a member of the claimant's household. "Property taxes accrued" also includes
			 mobile home parking permit fees assessed under s.
			 66.0435(3)
			 (c), Stats., for a mobile home owned by the
			 claimant or a member of the claimant's household.
(d) Under s.
			 71.52(3),
			 Stats., a buyer of a homestead or former homestead in possession under a land
			 contract shall be entitled to claim the property taxes accrued on the homestead
			 or former homestead.
(e) Under s.
			 71.54(2) (c)
			 2, Stats., if a claimant has moved from a
			 homestead owned by the claimant to housing that is exempt from taxation under
			 ch. 70, Stats., other than housing for which payments in lieu of taxes are made
			 under s.
			 66.1201(22),
			 Stats., and other than a correctional or detention facility, a claim or claims
			 may be allowed based on the property taxes accrued on that former homestead,
			 provided the claimant has attempted to sell the former homestead. The property
			 taxes accrued on the former homestead may be claimed for the period of time
			 ending on the earliest date any of the events in subds. 1. to 4. occurs. If the
			 earliest date any of those events occurs is in the calendar year following the
			 year in which the claimant moves to the tax-exempt housing, the property taxes
			 accrued shall be prorated from the date of the move to December 31 on a claim
			 for the calendar year in which the move occurs, and from January 1 to the
			 earliest date any of the events in subds. 1. to 4. occurs on a claim for the
			 succeeding calendar year. The events after which the property taxes accrued on
			 the former homestead may no longer be claimed are as follows:
1. The claimant ceases to own the former
			 homestead.
2. The claimant begins
			 to rent out or lease out the former homestead.
3. The claimant ceases to reside in the
			 tax-exempt housing.
4. Twelve
			 months of time elapses from the date of moving to the tax-exempt housing.
Example:
A claimant moves on July 1, 2017, from
				the homestead she owns to an apartment that is exempt from property taxes. She
				has listed her former homestead for sale with a realtor. While continuing to
				reside in the apartment, she sells the former homestead; the date on the
				closing agreement is May 31, 2018. The property taxes accrued on the former
				homestead are $2,400 for 2017 and the prorated property taxes on the closing
				agreement are $1,000. The claimant may file a 2017 homestead credit claim,
				based on the 2017 property taxes accrued of $2,400 for the entire year. She may
				also file a 2018 claim, based on the property taxes accrued of $1,000, prorated
				from January 1, 2018, to the date of the sale.