Wis. Admin. Code Tax § 15.02

Current through July 29, 2024

Section Tax 15.02 - Value subject to real estate transfer fee

(1) The conveyance of a parcel of real property by a partner to a partnership is subject to both real estate transfer fee and return.

(2) In an exchange of real properties, 2 separate and distinct conveyances are involved and the value should be separately determined for each.

Example: If (i) 'A' conveys a parcel X of real property worth $50,000 to `B,' and (ii) `B' in turn conveys a parcel Y of real property worth $45,000 plus cash of $5,000 to 'A,' both conveyances are taxable under s. 77.22(1), Stats., and a return is required to be submitted for each conveyance. The basis of the real estate transfer fee for conveyance (i) is $50,000 and for conveyance (ii) is $45,000. Therefore, the real estate transfer fee for conveyance (i) is $150 and that for conveyance (ii) is $135.

Wis. Admin. Code Department of Revenue § Tax 15.02

Cr. Register, December, 1981, No. 312, eff. 1-1-82; am. (1), Register, December, 1992, No. 444, eff. 1-1-93.

The December, 1992 amendment of sub. (1) is necessitated by a March 25, 1992 court of appeals, district II decision of Wisconsin Department of Revenue v. Mark, which overruled department of revenue policy as stated in the rule which imposes the transfer fee on an amount less than provided for by s. 77.21(3), Stats. As a result of that decision, this section shall have an effective date of March 25, 1992.

This section interprets s. 77.21, Stats.