Are cities and villages required to make a payment to towns in order to annex property?

It depends. If the municipality and town have entered into a boundary agreement, no payment is required. In the absence of such an agreement, however, payment is required. Sections 66.0217(14) and 66.0219(10) of the Wisconsin Statutes prohibit a city or village from annexing property unless the annexing municipality agrees to pay annually to the town, for five years, an amount equal to the amount of property taxes that the town levied on the annexed territory, as shown by the tax roll, in the year in which the annexation is final. Some municipalities require that the petitioner agree to pay this amount as part of an annexation agreement. The League attorneys suggest that governing body authorization to pay the required amount to the town for five years be clearly reflected in the annexation ordinance or made a part of the record of the proceedings before the annexation vote is taken.

(Rev. 9/2013)