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Annexation is the process of making property part of another property.
The term annexation can be used in 2 types of context.
Firstly, when the personal property of an owner becomes part of the real property. When this happens, the personal property must remain as part of the property when it is sold, or if it’s leasehold property and the lease expires.
Secondly, when local governments expand their boundaries to include a bigger geographic area. Thus expanding their jurisdiction beyond the previous boundaries.
The implications of these events can lead to expansion of tax bases of the local government.
However, property owners and residents of the area to be annexed can often resist the annexation as they don’t want to be part of a particular city.
This can be due to unfavorable tax codes or simply local patriotism.