What is annexation? Is it involuntary? A quick background on property annexation in TX, the pros and cons and insight into the process today.
Whenever we’re looking at a piece of land we always want to find out which jurisdiction it’s in. We discussed this on another video, but you can change the jurisdiction by being annexed into a municipality’s jurisdiction. So, what is annexation, what does it mean? Annexation means that you will then become part of that incorporated city.
A really interesting piece of history about Texas is when Texas was annexed into the U.S. in 1845, the leaders of Texas said that the only way they would do that is if they retained most of their private land. That’s why there is not a lot of federal land in Texas, which is really interesting. But, when you’re annexing a piece of property, there are pros and cons. The pros, the benefits, well then the city by law has to provide city sewer, city water and other services, emergency services, fire, etc. They have a certain number of years that they have to deliver that to you. Some of the cons are, well, your property taxes are probably going to go up because they need a way to pay for delivering these services.
Annexation actually used to be involuntary, so the city could annex you whenever they wanted if you were in their ETJ. It wasn’t until recently, in the last few years, that Governor Abbott signed Senate Bill 6 which now requires landowner and voter approval to be annexed into the city, which really changed the dynamic of that. They give landowners a choice, right. And, if you are annexed into the city and you want to maintain your ag exemption, you can actually get what’s called a development agreement between you and the city. It will keep your property in ag exemption, but when the time comes that you have to or that you choose to develop your property or sell to a developer, then it will be officially in the city and you will be taxed at a higher rate.
Feel free to reach out to us with questions or other topics you’d like to see covered.
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