In some cases, a city or town might want to annex property owned by the federal or state government. Although such property is not subject to property taxes, it might allow the city or town to establish contiguity with other parcels or might otherwise serve municipal goals.
SC Code Section 5-3-140 establishes rules for annexing property owned by the federal or state government. The rules are largely comparable to the 100% annexation method and require that the federal or state government “petition” the municipality for annexation.
For annexations of property owned by the State of South Carolina or its agencies, the SC Department of Administration requires several items before the state will provide the annexation petition. An explanation of these requirements may be found on the Department of Administration’s website.
The state requires the municipality to hold a public hearing on the proposed annexation and provide minutes of the hearing to the Department of Administration. Ordinarily no public hearing is required for 100% annexations, so a municipality hoping to annex state-owned property should be sure to remember the public hearing requirement.
The Department of Administration also requires the city or town to waive the right to charge franchise, stormwater drainage, or other fees to the state for services provided to the property for as long as the property is owned by the state. The state’s petition form contains standard fee waiver language, and the Municipal Association encourages cities and towns to consult with their municipal attorneys in order to analyze and understand the legal effects of the fee waiver.
Learn more about annexation processes in the Municipal Association’s Annexation Handbook.