LRB-5563/1
PN/MS/JS:skg/kaf:ch
1995 - 1996 LEGISLATURE
March 14, 1996 - Introduced by Representative Springer, cosponsored by Senator
Decker. Referred to Committee on Ways and Means.
AB1036,1,6 1An Act to renumber 86.302 (1m); to renumber and amend 66.03 (13) (a) and
286.303 (4); to amend 66.019 (5), 66.03 (5) and 79.006; and to create 66.03 (13)
3(a) 2., 86.302 (1m) (b) and 86.303 (4) (b) of the statutes; relating to: newly
4incorporated municipalities' populations for shared revenue distributions,
5local transportation aids for newly incorporated cities and villages and taxes
6levied by newly incorporated cities and villages.
Analysis by the Legislative Reference Bureau
Under current law, if any territory is annexed, detached or incorporated in any
year, general property taxes levied against the property are collected by the
treasurer of the municipality in which the territory was located on January 1 of the
year of annexation, detachment or incorporation. Under this bill and beginning on
January 1, 1996, for incorporations that occur in any year on or after January 1 and
before April 1, general property taxes levied against the property are treated for
property tax purposes as if the territory was incorporated on January 1 of the year
in which the territory was incorporated.
Also under current law, the department of transportation (DOT) administers
a local transportation aids program, which makes payments to counties and
municipalities (cities, villages and towns). Payments to a municipality are based on
the greater of a sum determined under a share of costs formula or under an aid rate
per mile of roads and streets under the municipality's jurisdiction; the minimum aid
rate is $1,390 per mile during 1996. The costs used in the share of costs formula are
the average of actual costs incurred by the municipality over the previous 6 years.
For a newly formed municipality, the average costs are based on the number of years
for which cost data is available, until actual cost data is available for the previous
6 years. If no cost data is available, DOT may allocate costs between the newly

formed municipality and the municipality from which it was formed until actual cost
data is available for each municipality.
This bill changes the method for determining costs to be used in the share of
costs formula for a newly formed municipality. Under the bill, costs incurred by the
municipality and a municipality formed within the previous 6 years are combined
and apportioned to each municipality in proportion to the total mileage of streets and
roads under their respective jurisdictions. The bill also requires DOT to use certified
plats filed by each municipality when determining the number of miles under each
municipality's jurisdiction.
Also under this bill, if a municipality is formed before April 1, the department
of administration is required to certify its population and the corrected population
of the municipality from which it was formed. Those figures are used in calculating
the shared revenue distributions to the 2 municipalities in the next year.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1036, s. 1 1Section 1. 66.019 (5) of the statutes is amended to read:
AB1036,2,92 66.019 (5) Taxes levied before incorporation; how collected and divided.
3Whenever a village or city is incorporated from territory within any town or towns,
4after the assessment of taxes in any year and before the collection of such taxes, the
5tax so assessed shall be collected by the town treasurer of the town or the town
6treasurers of the different towns of which such village or city formerly constituted
7a part, and all moneys collected from the tax levied for town purposes shall be divided
8between the village or city and the town or the towns, as provided by s. 66.03 (13) (a)
91.
, for the division of property owned jointly by towns and villages.
AB1036, s. 2 10Section 2. 66.03 (5) of the statutes, as affected by 1995 Wisconsin Act 27, is
11amended to read:
AB1036,4,212 66.03 (5) Apportionment board. The boards or councils of the municipalities,
13or committees, thereof selected for that purpose, acting together, shall constitute an
14apportionment board. When any municipality is dissolved by reason of all of its

1territory being so transferred the board or council thereof existing at the time of such
2dissolution shall, for the purpose of this section, continue to exist as the governing
3body of such municipality until there has been an apportionment of assets by
4agreement of the interested municipalities or by an order of the circuit court. After
5an agreement for apportionment of assets has been entered into between the
6interested municipalities, or an order of the circuit court becomes final, a copy of such
7apportionment agreement, or of such order, certified to by the clerks of the interested
8municipalities, shall be filed with the department of revenue, the department of
9natural resources, the department of transportation, the department of education,
10the department of administration, and with any other department or agency of the
11state from which the town may be entitled by law to receive funds or certifications
12or orders relating to the distribution or disbursement of funds, with the county
13treasurer, with the treasurer of any municipality, or with any other entity from which
14payment would have become due if such dissolved municipality from which such
15territory was transferred had continued in existence. Thereafter Subject to ss.
1679.006 and 86.303 (4), thereafter
payments from the shared revenue account made
17pursuant to ch. 79, payments of forest crop taxes under s. 77.05, of transportation
18aids under s. 20.395, of state aids for school purposes under ch. 121, payments for
19managed forest land under subch. VI of ch. 77 and all payments due from a
20department or agency of the state, from a county, from a municipality, or from any
21other entity from which payments would have become due if such dissolved
22municipality from which such territory was transferred had continued in existence,
23shall be paid to the interested municipality as provided by such agreement for
24apportionment of assets or by any order of apportionment by the circuit court and

1such payments shall have the same force and effect as if made to the dissolved
2municipality from which such territory was transferred.
AB1036, s. 3 3Section 3. 66.03 (13) (a) of the statutes is renumbered 66.03 (13) (a) 1. and
4amended to read:
AB1036,4,115 66.03 (13) (a) 1. Whenever Subject to subd. 2., if any territory is annexed,
6detached or incorporated in any year, general property taxes levied against the
7territory shall be collected by the treasurer of the municipality in which the territory
8was located on January 1 of such year, and all moneys collected from the tax levied
9for local municipal purposes shall be allocated to each of the municipalities on the
10basis of the portion of the calendar year the territory was located in each of the
11municipalities, and paid accordingly.
AB1036, s. 4 12Section 4. 66.03 (13) (a) 2. of the statutes is created to read:
AB1036,4,1713 66.03 (13) (a) 2. If a city or village is incorporated after January 1 and before
14April 1, the procedures described in subd. 1 shall be applied as if the city or village
15was incorporated on January 1 of the year in which it was incorporated and the
16territory shall be treated for purposes of ch. 70 as if the incorporation had occurred
17on January 1.
AB1036, s. 5 18Section 5. 79.006 of the statutes is amended to read:
AB1036,5,3 1979.006 New incorporations. In the case of municipalities formed after 1976,
20the
The information needed for the determinations under this chapter shall be
21calculated as follows: for those years for which the necessary data does not exist, the
22data for the new municipality and the municipality from which it was formed shall
23be combined and the sum shall be apportioned to each municipality in proportion to
24its respective full value in the first year of assessment of the new municipality; if the
25municipality is formed before April 1, the department of administration shall certify

1the population of the newly created municipality, and the corrected population of the
2municipality from which it was formed, and those figures shall be used for
3distributions under this chapter in the year after the incorporation
.
AB1036, s. 6 4Section 6. 86.302 (1m) of the statutes is renumbered 86.302 (1m) (a).
AB1036, s. 7 5Section 7. 86.302 (1m) (b) of the statutes is created to read:
AB1036,5,126 86.302 (1m) (b) Upon incorporation of a village or city, the board of the village
7and the governing body of the city shall file with the department and with the county
8clerk a certified plat of the village or city showing the roads and streets under its
9jurisdiction and the mileage thereof to be open and used for travel as of the date of
10incorporation, which may be used by the department in making computations of
11transportation aids. One-half of the mileage of roads or streets on boundary lines
12shall be considered as lying in the village or city.
AB1036, s. 8 13Section 8. 86.303 (4) of the statutes is renumbered 86.303 (4) (a) and amended
14to read:
AB1036,5,2115 86.303 (4) (a) The multiyear average costs used to determine the share of cost
16aids amount for local units of government shall be based on the 6 most recent years
17for which actual costs are available. Multiyear average costs for a newly
18incorporated municipality shall be based on the number of years for which cost data
19is available until average cost data is based on 6 years of actual costs. If no cost data
20is available for a newly incorporated municipality, the department may allocate costs
21for the municipality until actual cost data is available.
AB1036, s. 9 22Section 9. 86.303 (4) (b) of the statutes is created to read:
AB1036,6,523 86.303 (4) (b) In the case of municipalities formed within the previous 6 years,
24the information needed for the determinations under this section shall be calculated
25as follows: for those years for which the necessary data does not exist, the data for

1the new municipality and the municipality from which it was formed shall be
2combined and the sum shall be apportioned to each municipality in proportion to the
3total mileage of roads and streets under their respective jurisdictions. In making
4these calculations, the department shall use the certified plats filed under s. 86.302
5(1).
AB1036, s. 10 6Section 10. Initial applicability.
AB1036,6,97 (1) The treatment of sections 66.019 (5), 66.03 (5) and (13) (a) and 79.006 of the
8statutes and the creation of section 66.03 (13) (a) 2. of the statutes first apply to
9incorporations that occur on January 2, 1996.
AB1036,6,1010 (End)
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