- Who Would Be Affected by Annexation?
- Annexation & Taxes
Annexation & Taxes
Property Tax and Savings Plan
The Manchester Board of Alderman unanimously approved a Post-Annexation Property Tax and Savings Plan at its April 17 meeting. The new plan outlines how residents will experience significant savings following a successful annexation vote on November 7, 2023. The cost savings will be created by reduced property tax rates for current residents and lower costs for basic municipal services for newly incorporated residents.
Newly Incorporated Residents
Should residents in the unincorporated area and Manchester approve the annexation proposal at the ballot box later this year, many newly incorporated residents will see an estimated cash savings of approximately $165 compared to what they pay for basic services now. For instance, a resident living in a neighborhood off Weidman Road will see approximately a .5% or $25 increase in real property tax following annexation. The increase in property tax would be offset by significantly lower costs in waste services as residents in Manchester only pay $6 per month for trash, recycling, and yard waste collection currently. Further, newly incorporated residents are likely to see added savings through reduced costs to street and light maintenance, winter weather treatment, and more. Click here to learn more about the Post-Annexation Property Tax and Savings Plan for newly incorporated residents.
Current Manchester Residents
Growing a municipality through annexation increases the overall assessed value of property in the City. As a result, the added value of property increases the revenue that is collected from a property tax. According to state statute, when an increase to a municipality’s overall assessed property value occurs, that city’s revenue from a property tax may only increase at a rate adjusted for inflation. When the amount of revenue exceeds what is allowed, the municipality must adjust its property tax rates downward. Because the overall assessed values of property in Manchester will increase by approximately 50 percent following annexation, the City must lower its property tax rates. Following annexation, most Manchester residents will see a $100 or more decrease in their annual City property tax bills. Click here to learn more about the Post-Annexation Property Tax and Savings Plan for current Manchester residents.
Post-Annexation Savings Calculator
Curious about what your estimated savings will be after annexation goes into effect? Click here to access the Post-Annexation Savings Calculator for newly incorporated residents and current Manchester residents.