What Is Annexation
Annexation is a process cities follow to add adjacent properties to their jurisdiction.
Why is the City Interested in Annexation?
Annexation brings funds to invest in our community. A portion of certain taxes paid by residents to the State of Arizona, such as State income tax and State sales tax, are given back to the cities to pay for services such as police, fire, parks and recreation, and transportation. These payments are calculated based on population within each city.
Pima County has a large population that lives outside a city or town, for which we do not receive these funds. This is money that is paid by Pima County residents to the State that does NOT come back to the Tucson region.
How much money are we talking about?
With more than 300,000 people living outside the Tucson city limits, this amounts to tens of millions of dollars every year. This is money that we already pay to the State and could be used in our community to invest in police, fire, roads, and parks.
Sales tax is the City's largest source of revenue. Many retailers in our region are outside the City limits and therefore collect only State sales tax, but no City sales tax. This hurts our community. For businesses that are located within City limits that have competitors just outside City limits, it's an equity issue. Annexation levels the playing field for businesses and helps strengthen the City’s economic base.