Annexation And Secession

A change in municipal or county borders does not change the borders of a PID. This includes the annexation of unincorporated territory. Remember, a PID is like a contract between neighbors and exists independent of the municipality. 

For a PID to expand its borders, approval is required from each of the following parties (§17D-4-201(3)):

  • The governing board of the PID;
  • The creating entity (the town, city, or county)*;
  • 100% of affected voters (those joining the PID); and
  • 100% of affected surface property owners (those joining the PID).

*Note: This may be waived if the governing document says so.

If the PID gets approval from all the right people, it can file the change with the Lieutenant Governor and await certification.

What if People Want to Leave?

It is possible for areas to withdraw from a PID. They just need the same approvals as required to join one.

But if you think bailing on the PID will get rid of the extra taxes, you’re wrong. You can avoid accumulating any future PID-related tax hikes, but you still have to pay extra property taxes on the bonds already sold by the PID before you withdrew. Those debt-related taxes will remain associated with your property until the debt is paid off.