Annexation
The legal process by which a city expands its boundaries to include adjacent unincorporated land, adding new residents and tax base.
How It Works
Annexation laws vary dramatically by state. Some states make annexation easy (Texas, North Carolina), allowing cities to grow rapidly. Others make it nearly impossible without consent of the annexed residents (California, most Northeastern states). Aggressive annexation can expand a city's tax base and prevent suburban tax base erosion. However, it also requires extending services (police, fire, roads, water) to the new territory, which may cost more than the added revenue initially.
Related Terms
- City Charter — A city's foundational governing document — similar to a constitution — that establishes the form of government, powers, organizational structure, and key procedures.
- Home Rule — The authority granted by a state to its cities to govern themselves and pass local laws without needing specific state legislative approval for each action.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.