Why might a city choose to annex land within its Extra-Territorial Jurisdiction (ETJ)?

A city may choose to annex land within its Extra-Territorial Jurisdiction (ETJ) primarily to enhance its tax base. Annexation allows the city to bring additional land and properties into its jurisdiction, which can lead to an increase in property taxes as new residents and businesses contribute to the city’s financial resources. This additional revenue can help fund public services, infrastructure improvements, and community development projects.

Furthermore, by expanding its tax base, a city can become less reliant on existing residents and businesses for funding, spreading the tax burden more equitably across a larger population and area. This strategic move supports long-term urban planning objectives, promoting growth and ensuring the sustainability of the city’s operations.

While increasing population, reducing housing prices, and deterring environmental impact can all be considerations in urban planning, the most direct and immediate financial incentive for annexation is the improvement of the tax base, which in turn strengthens the city’s economic position.