WELL ABANDONMENT GRANT UPDATE – 4/12/2022
Representatives of the Village of Lannon have informally inquired about the taxability of grant funds received by property owners in conjunction with the expansion of the municipal water system.
The Village has been advised by its legal counsel that no definitive guidance can be provided by the Village except that the IRS will treat as income a DNR grant award greater than $600 that is associated with a 1099 Form and should be accounted for when filing tax returns. In all other instances, grant recipients are urged to consult with their tax adviser to consider their individual circumstances. The Village is unable to advise individuals about their tax liability, nor to procure funds to off-set any tax liability resulting from external financial assistance received.
WELL ABANDONMENT GRANT UPDATE – 12/15/20
- Well estimate forms are at Village Hall and on the Village’s website.
- Well Abandonment Grant applications are due approximately 1 month prior to the start of well abandonment work on your property.
- Applications are not due by December 10th as indicated in the letter sent to residents impacted by the project.
- DNR indicated they need to be submitted before the work is done.
- Mid-City and CTW do not plan to start well abandonments until March.
- Please apply by the end of February 2021.
- If your taxable income will be less in 2020 than it was in 2019, it is to your advantage to wait until January to submit your well abandonment grant form. Well Abandonment Grant eligibility is based on the income of the most recent full year’s taxable income. Contact Sandy Chancellor at DNR for special circumstances such as a recent change in employment: (608) 275-3206.
