| UNC School of Government review of Annexation Legislation |
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(1998 Session) Annexation For the past three years, a committee of the Legislative Research Commission has worked during the period between legislative sessions, reviewing the state's involuntary annexation statute and debating whether it should be changed in significant ways. The first two committees proposed statutory changes that the League of Municipalities found too harmful to the statute, and the league successfully challenged those proposals once they reached the General Assembly. Last year, however, both the committee and the league were interested in developing a proposal that all sides could support, and the result was House Bill 1361. The bill worked its way through the legislature without substantive change and was eventually enacted as S.L. 1998-150; it became effective November 1, 1998. In general, the intention of S.L. 1998-150 is to make annexation somewhat more difficult, largely by raising the standards an area must meet before it may be annexed (although one change makes certain annexations easier to do). In addition, the act makes new arrangements for agricultural land that is included in an annexation area and adds a procedural step, the public informational meeting, to the annexation process. Finally, the act clarifies a few minor matters and attempts to codify some of the case law interpreting the statute. The discussion below describes the significant changes effected by the legislation. Richard D. Ducker and David W. Owens, Reprinted from
1998 was a relatively productive year for planning and development-related legislation, particularly if one considers that the legislative sessions in even-numbered years are supposed to be the "short" ones. Local governments both gained and lost. Although municipalities will be made subject to generally more demanding annexation requirements, Planners will be interested to know that evidence of a comprehensive land use plan will be a factor in determining priorities for at least some of the infrastructure funds.
Statewide Legislation Throughout the 1990s North Carolina involuntary annexation statutes have been the subject of almost constant debate and study. The North Carolina League of Municipalities has opposed many of the legislative proposals offered during this period. However, a proposal recommended by an LRC committee this year received the League’s support and was eventually enacted as S.L. 1998-150 (H 1361). The legislation became effective November 1, 1998. The new law is analyzed in greater detail in the chapter entitled Local Government and Finance. Generally, the legislation places more demanding requirements on cities than desire to annex. The annexation standards governing the land use, the extent of land subdivision, and the population density of the area are altered in a way that will make them more difficult for cities to satisfy. One unusual change concerns the annexation of agricultural land that qualifies for use-value taxation. If annexed, such land becomes part of the city and becomes part of the city’s planning jurisdiction, but is not subject to property taxation nor is the area entitled to city services.
The new law
also gives attention to procedures designed to protect the rights of
affected property owners. If a city does not provide police protection,
fire protection, street maintenance, and garbage collection service within
60 days after the effective date of the annexation, an affected owner may
petition the Local Government Commission for an order to abate property
taxes until after the city begins to provide such services. Another
feature is the requirement that the city hold a public informational
meeting before it holds its public hearing. The city must present its
annexation report at the meeting and respond to questions. The report must
include a statement showing how the annexation will affect the city’s
finances and services, including the estimates of the changes in city
revenues. Richard D. Ducker and David W. Owens, UNC School of Government
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