§ 17-1702 Effect of alteration of town boundaries. 1. The boundaries of a village incorporated or which has annexed territory to embrace the entire territory of a town, shall be deemed to embrace the entire territory of such town as such territory may thereafter be extended, diminished or altered pursuant to law. Whenever the territory of any other village to which this article applies is extended, diminished or altered pursuant to law, other than by consolidation, then the territory of the town which is coterminous with such village shall be deemed to be correspondingly extended, diminished or altered.

2. The real property excluded by law from the territory of a town shall not be subject to further assessment or taxation for either general or local purposes by a village embracing the entire territory of such town, but taxes for the purposes of such village and local assessments may be levied and collected against the real property annexed by law to the territory of such town in the same manner and with the same force and effect as taxes and local assessments are levied and collected against other real property within the village. Taxes or local assessments, if any, theretofore assessed against real property excluded from such town shall be levied and collected in the same manner and with the same force and effect as prior to such exclusion.

3. The extension, diminution or alteration of the boundaries or territory of a town wholly embraced within the boundaries of a village shall in no way affect or impair the boundaries or territory of a school district nor shall the assessment, levy or collection of taxes for school district purposes be affected or impaired thereby.

4. Such extension, diminution or alteration of the boundaries or territory of a town shall in no way affect or impair the jurisdiction of any court with respect to pending actions or proceedings, nor with respect to the prosecution of crimes committed prior thereto, and all courts shall have and retain jurisdiction of such actions, proceedings and prosecutions as though such extension, diminution or alteration had not been made.