Tax & Accounting Blog

Water System Installation is Double-Edged Sword in Eyes of Key West Residents

Blog, Indirect Tax, ONESOURCE February 24, 2016

Residents of the Twin Ridge subdivision near Dubuque city, Iowa, are muffed over the city’s recent purchase of a $1.3 million water and sewer provider, viewing the purchase as a coercion to force an annexation of their community.  Although some see the purchase as a logical step due to current infrastructure, others view it as the city forcing them to pay the 1.5 times premium on the current water and sewer rate which would go into effect should they not adopt the annexation.  Although this is standard fare for unincorporated territory, it is not viewed favorably by all.  Should residents agree to become annexed, the rate would be decreased, however, other city taxes associated with being a part of the city would be implemented.  Additionally, all streets in Twin Ridge except for one are privately owned, which would require additional revenue to bring them up to city standards.  The Twin Ridge annexation is just one example of many across the country that has residents weighing in on if the new ‘city’ classification is really what they want.