Merger of Entities
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Is a conveyance pursuant to a merger of entities exempt from transfer fee?
Mineral Rights
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Is the conveyance of mineral, timber or air rights require a transfer return and transfer fee?
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How is the transfer fee calculated on a mineral lease?
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When a lease is recorded and a transfer fee is paid for a mineral lease to extract gravel for a future road project, and the road project goes to another contractor, the lease is terminated and all consideration paid is returned according to the lease terms. Is the transfer fee that was paid with the recording of the lease eligible for a refund?
Mobile Homes
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A mobile home on land this is leased or owned by the mobile homeowner on a foundation (including blocks) and hooked to water, sewer and other utilities is sold. Is the conveyance subject to transfer fee?
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A mobile home that is subject to the municipal permit fee under sec. 66.0435(3), Wis. Stats. that is on a foundation (including blocks) and hooked to water, sewer and other utilities is sold. Is the conveyance subject to transfer fee?
Merger of Entities
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Is a conveyance pursuant to a merger of entities exempt from transfer fee?
Yes. Sec. 77.25(6), Wis. Stats. exempts conveyances pursuant to the merger of entities. Sec. 77.21(1e), Wis. Stats. defines the “Mergers of Entities” as the following:
"Mergers of entities" means the merger or combination of two or more corporations, nonstock corporations, limited liability companies, limited partnerships, or other entities, or any combination thereof, under a plan of merger or a plan of consolidation permitted by the laws that govern the entities.
For the exemption to apply, the statutory filing requirements by the laws that govern the entities must be complied with.
Mineral Rights
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Is the conveyance of mineral, timber or air rights require a transfer return and transfer fee?
A conveyance of mineral, timber or air rights, requires an electronic real estate transfer return since it is a conveyance of real estate per state law (sec. 77.21(1m), Wis. Stats.). A transfer fee is required unless specifically exempt from fee under sec. 77.25, Wis. Stats.
Note: Any type of document, lease, assignment of lease, deed or any other instrument conveying a mineral, timber or air rights interest is subject to transfer return and transfer fee unless specifically exempt from fee under sec. 77.25, Wis. Stats.
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How is the transfer fee calculated on a mineral lease?
The transfer fee is calculated on the amount of the full actual consideration paid or to be paid, per state law (sec. 77.21(3) (a), Wis. Stats.).
Examples of a gravel lease for calculating the fee when the lease is signed:
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Single Payment - when the lease is paid by a single payment based on an estimate of what will be extracted with no future payments or royalties
- You must submit a transfer return and fee based on the single payment amount
- If the amount of what is extracted exceeds the value originally reported, you must file an "Amended Real Estate Transfer Return" to report the additional consideration and pay the additional transfer fee due
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Royalty/installment - when the amount of gravel to be extracted is unknown, and you only make a down payment with future royalties or other types of future payments to be made based on extraction
- The fee is initially imposed on the down payment when the document is recorded
- When additional payments are made, you must file an "Amended Real Estate Transfer Return" to report the additional consideration paid for each payment
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No payment/consideration - when there is no down payment or other consideration paid when the lease is recorded and only royalties or other type payments are to be made based upon extraction, on the transfer return
- You may use exemption sec. 77.25(13), Wis. Stats., as a conveyance of real estate having a "value of $1,000 or less"
- When additional payments are made, you must file an "Amended Real Estate Transfer Return" to report the consideration paid for each payment
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When a lease is recorded and a transfer fee is paid for a mineral lease to extract gravel for a future road project, and the road project goes to another contractor, the lease is terminated and all consideration paid is returned according to the lease terms. Is the transfer fee that was paid with the recording of the lease eligible for a refund?
Yes. Since the lease was terminated without any gravel being taken and no consideration given, Exemption (13) can be used.
To request a refund of the original transfer fee paid complete an "Amended Real Estate Transfer Return". Since the transfer fee is assessed against the grantor per state law (sec. 77.22, Wis. Stats.), refunds are issued to the grantor unless specifically requested otherwise.
Note: All refund claims must be made within four years of the date the mineral lease is recorded per sec. 77.26(3), Wis. Stats.
Mobile Homes
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A mobile home on land this is leased or owned by the mobile homeowner on a foundation (including blocks) and hooked to water, sewer and other utilities is sold. Is the conveyance subject to transfer fee?
Yes. The mobile home is classified as real estate and subject to fee when it is:
- On land leased or owned by the homeowner
- On a foundation (includes blocks)
- Hooked to utilities
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A mobile home that is subject to the municipal permit fee under sec. 66.0435(3), Wis. Stats. that is on a foundation (including blocks) and hooked to water, sewer and other utilities is sold. Is the conveyance subject to transfer fee?
Yes. Sec. 66.0435(3), Wis. Stats. only exempts the mobile home from real property taxation. Per sec. 77.21(1m), Wis. Stats., it's still a fixture to the real estate and the conveyance of it is subject to transfer fee. The conveyance of a mobile home is subject to fee when it is:
- On land leased or owned by the homeowner
- On a foundation (includes blocks)
- Hooked to utilities
Questions?
Contact us at RETR@wisconsin.gov.