Property Tax Deferral Loan Program

State

Wisconsin

Year

2021

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of property taxes and special assessments. Participants apply for a loan equal to the amount of property taxes and special assessments levied. The maximum annual loan is $3,525. Deferral of property taxes through this program constitutes a lien on the property for the amount of taxes due plus interest. Interest rates are 1 percentage point higher than the prime lending rate established by the Federal Reserve Board. The interest rate on loans made in 2021 for taxes levied in 2020 is 4.25%. Principal and interest are repaid when an individual transfers ownership of home or moves from home, or the death of the applicant or last surviving eligible co-owner occurs.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program and up to 1 acre of surrounding land. Mobile homes are not eligible.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Veteran

Other Criteria

Description of Eligibility Criteria

The homeowner must be at least 65 years of age or a qualifying veteran at any age who, during the preceding year, lived in the dwelling unit for at least 6 months (temporary residency in a health care facility may be substituted for any portion of this 6-month residency) and had a total household income at or below $20,000. Any co-owner, or spouse of an applicant, must be at least 60 years of age. Total outstanding liens, judgments, mortgages and delinquent property taxes may not exceed 33% of the value of the housing unit, as determined by the most recent property tax assessment. Applications for the deferral program must be filed with the Wisconsin Housing and Economic Development Authority (WHEDA) by 30 June of the year the deferred taxes are due. Contact WHEDA for application information.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state provides the loan directly to the property owner. Additionally, the property tax deferral loan program is funded from WHEDA's surplus fund, which the state of Wisconsin requires the housing authority to maintain.

Record ID

WI102_RR21

Footnotes

Household income is broadly defined to reflect most cash resources available to claimants, and it includes all income that is taxable for Wisconsin income tax purposes plus nontaxable income sources such as Social Security, supplemental security income and pensions. Appendix III in Source Publication provides a complete listing of the income sources included in the definition of household income under this program. The applicant must maintain fire and extended casualty insurance coverage on the home with the Wisconsin Housing and Economic Development Authority named as a lien holder. Any previous loans under this program and loans under the housing rehabilitation loan program, also administered by WHEDA, are excluded from this limitation.

Sources

Wis. Stat. § 234.621 ~ § 234.626 (in effect for 2021)
Source Constitution: 
Wis. Const. Art. VIII, § 1
Wisconsin Legislative Fiscal Bureau, Property Tax Deferral Loan Program (2021)
[https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2021/0025_property_tax_deferral_loan_program_informational_paper_25.pdf Accessed 04/29/2022]
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