Wisconsin Code § 66.0221

Annexation of and creation of town islands
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(1) Upon its own motion and subject to sub. (3) and ss. 66.0301
(6) (d) and 66.0307 (7), a city or village, by a two-thirds vote of
the entire membership of its governing body, may enact an ordinance annexing territory which comprises a portion of a town or
towns and which was completely surrounded by territory of the
city or village on December 2, 1973. The ordinance shall include
all surrounded town areas except those that are exempt by mutual
agreement of all of the governing bodies involved. The annexation ordinance shall contain a legal description of the territory
and the name of the town or towns from which the territory is detached. Upon enactment of the ordinance, the city or village clerk
immediately shall file 6 certified copies of the ordinance with the
secretary of administration, together with 6 copies of a scale map.
The city or village shall also file with the county clerk or board of
election commissioners the report required by s. 5.15 (4) (b). The
secretary of administration shall forward 2 copies of the ordinance and scale map to the department of transportation, one
copy to the department of natural resources, one copy to the department of revenue and one copy to the department of administration. This subsection does not apply if the town island was
created only by the annexation of a railroad right-of-way or
drainage ditch. This subsection does not apply to land owned by
a town government which has existing town government buildings located on the land. No town island may be annexed under
this subsection if the island consists of over 65 acres or contains
over 100 residents. Section 66.0217 (11) applies to annexations
under this subsection. Except as provided in sub. (2), after December 2, 1973, no city or village may, by annexation, create a
town area which is completely surrounded by the city or village.
(2) A city or village may, by annexation, create a town area
that is completely surrounded by the city or village if a cooperative plan for boundary change under s. 66.0301 (6) or 66.0307, to
which the town and the annexing city or village are parties, applies to the territory that is annexed.
(3) (a) 1. Except as provided in subd. 2., no territory may be
annexed by a city or village under this section unless the city or
village agrees to pay annually to the town, for 5 years, an amount
equal to the amount of property taxes that the town levied on the
annexed territory, as shown by the tax roll under s. 70.65, in the
year in which the annexation is final.
2. No payments under subd. 1. must be made if the city or
village, and the town, enter into a boundary agreement under s.
66.0225, 66.0301, or 66.0307.
(b) No territory may be annexed by a city or village under this
section if no part of the city or village is located in the same
county as the territory that is subject to the proposed annexation
unless all of the following occur:
1. The town board adopts a resolution approving the proposed annexation.
2. The county board of the county in which the territory is
located adopts a resolution approving the proposed annexation.

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