Keeping up with Cordova TN news from afar is a good idea if you own investment properties in this area. Cordova is not actually an official city, and much of it has been annexed by Memphis and other nearby municipalities, so if your investment properties haven’t been swallowed into a growing official urban area yet, it’s a good idea to have some advance warning if it might happen to you or something you own.
You might not worry about it too much if you own residential properties that you rent or lease out to families or single tenants. However, annexation could impact you. The tenants might be the ones that get to enjoy the additional services and benefits that come with being inside city limits, but it would be you that has to pay the extra taxes, particularly property taxes.
When cities annex, it’s almost always for the goal of creating additional sources of revenue for their tax base. So, they look at neighboring communities that are still unincorporated or county land, particularly ones with high values or incomes they can collect good taxes from without costing much in terms of expanding services.
It can also hit you if you own a business or commercial property, whether it’s a business you own or something you rent out to commercial clients for their own operations. Being annexed into city limits not only means higher taxes on the property value itself, but usually a sales tax and a whole slew of new rules, regulations, and laws that have to be followed across every aspect of the business.
You might just crunch the numbers and decide it’s simpler and saner to sell off that deal with the losses and extra paperwork.