Tax & Accounting Blog

Annexations Can Be Divisive Amongst Local Residents

Blog, Indirect Tax, ONESOURCE February 22, 2016

Everyday throughout the country many communities are in discussions over annexing nearby parcels of land or unincorporated towns and holding council meetings on a regular basis.  However, it is not always a lock that residents of such places wish to be annexed into neighboring cities.  Although access to public services may be a perk to some, paying new local taxes are not always worth the trade off for others.  Take Alma, Nebraska for example.  Recently there has been much discussion about Alma annexing a new subdivision of land into the city.  However, many residents stand opposed, including at least one local business owner who is unhappy that the city has been unclear on exactly what services they would offer in exchange for the tax hike, and fearful about the city’s prior reputation of not being livestock friendly hurting his business.  These types of concerns and growing pains are commonplace before new annexations can occur, and only a starting point before they become part of a ballot to be voted on later.