September 20, 2022

Impact of Annexation on Counties, Cities, Towns, and Townships

Written by: Curtis L. Coonrod and Benjamin W. Roeger If a city or town annexes territory, the county, and township lose revenue, right? Yes, but maybe not as much as you might think. There are many misconceptions about what happens to local revenue when a city or town annexes territory.   Here is a basic outline: Effect of Annexation on Cities (or Towns), Countries, and Townships (A) After annexation, the county and township may reduce their property tax levies voluntarily, but they are not required to do so. (B)  I.C. 6-1.1-18.5-12 and 13 (C)  If the LIT distribution of any unit is increased, as usually happens when a city or town annexes territory, the increase to that unit is made up […]