While approving our new INNvision Comprehensive Plan in January and February, and throughout the 12-month process of its development, I fielded a lot of questions around “annexation” - the legal process of a piece of property being added to the city limits. 

Last month I covered some basic annexation FAQs, in this final column on this topic, I’ll go under the hood on the 3 types of annexation permitted under state law. If you’d like to read last month’s column, visit the Simpsonville Sentinel website.

Please note this is a very simple and basic explanation. If you want to dive in deep, I would refer you to SC Code of Laws, Title 5, Section 3. I would also recommend the Municipal Association’s Annexation Handbook (https://www.masc.sc/uptown/02-2023/updated-annexation-handbook-now-available). 

The Three Annexation Methods

There are three legal types of annexation under SC law - 100%, 75%, and 25%. The numbers are in reference to the percentage of owners for each individual parcel asking to be annexed which are required to sign off - 100% of owners request annexation, 75% of owners request annexation, 25% of owners request annexation. You’ll notice there is no “0%” method of annexation - where no property ownership is required to be in agreement. 

Before we dive in, I’ll reiterate what I said last month - nothing can be annexed unless a property owner requests it, and then, only if City Council approves it. Cities cannot force annexation. Additionally, cities must follow the annexation process once paperwork is filed. 

Also remember, because annexation is at the request of the property owner, the “methods” of annexation are rooted in property ownership. There is no special power granted to the City that absolves any property rights – each method of annexation is rooted in what percentage of the property owners are requesting to be brought into the city limits.

100% Method

The 100% method is the “cleanest” method of annexation and the most popular. In this method, 100% of the property owners of the particular parcel in question agree to sign the petition for annexation (remember - the form used to request annexation is actually a “petition”). Property owner in this case is defined in state law, but in short - it’s whoever is on the deed. 

The process for the 100% method is exactly what you see in Fountain Inn - because we haven’t seen any other types of requests in recent memory. Once a Petition for Annexation is filed with City Hall, the City then must follow the state-prescribed process, which is detailed below directly from state law:

● [Property owners must] submit a petition signed by 100% of the owners of the property to be annexed. 

● Upon acceptance of the petition, the governing body adopts an ordinance declaring the area annexed to the municipality.

● The governing body must follow SC Code Sec. 5-3-310 et seq. if the property to be annexed is in a special purpose district.

● After the annexation is complete, the governing body must file notice with the SC Secretary of State, the SC Department of Transportation, the SC Department of Public Safety, and the SC Revenue and Fiscal Affairs Office.

In addition to state law, local law comes into play. In Fountain Inn, regardless of the method used, there is still a public notice and public hearing requirement, and a vote by our Planning Commission on a recommendation to Council.

75% Method

In the 75% method, 75% of the property owners sign the petition for annexation. More specifically, it is “75% of the free holders owning at least 75% of the assessed value” of the parcel(s) in question. 

This process has a higher level of scrutiny in order to be annexed, given that not all property owners are in agreement for annexation, these elements include, again directly from state law:

● The petition must be dated before the first signature is affixed. All necessary signatures must be obtained within six months from the date of the petition.

● The petition and all signatures are open for public inspection at any time.

● The petition must state the code section under which annexation is sought, SC Code Sec. 5-3-150(1).

● The petition must contain a description and plat of the area to be annexed. 

● A suit to challenge the annexation may be filed by the municipality, any resident of the municipality, or any resident or owner of property in the area to be annexed.

● At least 30 days before acting on an annexation petition, the municipality must give notice of a public hearing: 

○ in a newspaper of general circulation in the community;

○ by posting on the municipal bulletin board;

○ by written notification to taxpayers of record of properties in area to be annexed; • to the chief administrative officer of the county;

○ to all public service or special purpose districts; and

○ to all fire departments, whether volunteer or full time. 

○ The notice must also include a projected timetable for provision or assumption of services. 

● At the public hearing, the municipality must provide:

○ a map and complete legal description of the area to be annexed; 

○ a statement of public services to be assumed or provided by the municipality; and 

○ taxes and fees required for these services.

● After all procedural requirements are met, the governing body must: 

○ adopt an ordinance declaring the area annexed to the municipality; 

○ undertake the process described in SC Code Secs. 5-3-310 et seq., if the annexed property is in a special purpose district; and

○ file notice with the SC Secretary of State, SC Department of Transportation, SC Department of Public Safety, and SC Revenue and Fiscal Affairs Office.

(If you’re looking for a recent example of this, look up the Cherrydale annexation that the City of Greenville recently passed - it was a 75% method annexation.)

25% Method

The 25% method is the hardest way to annex property under SC law. Personally, I haven’t seen it done anywhere around this area in my memory. It is the only method in which property ownership gives way to “resident qualified electors” - registered voters of the parcel(s) to be annexed. It requires 25% of those individuals to sign a petition, which then triggers an election within the body of qualified electors, and potentially then another election throughout the municipality. The full process is listed below:

● At least 25% of the qualified electors who are residents in the area to be annexed must sign a petition and file it with the municipality’s council. The petition must contain a description of the area to be annexed, the signatures of the requisite number of qualified electors, the address of residence of each signatory, and the code section pursuant to which the proposed annexation is to be accomplished. SC Code Sec. 5-3-300.

● If the council finds that at least 25% of the qualified resident electors have signed the petition, it may certify that fact to the county election commission by resolution.

● Upon receipt of the certification resolution, the county election commission must order an election to be held within the area proposed to be annexed.

○ The election is a special election and must be conducted under the provisions of Chapters 13 and 17 of Title 7, SC Code of Laws. 

○ The election commission must give at least 30 days’ notice of the election in a newspaper of general circulation in the area to be annexed.

○ At the election, the registered qualified electors residing within the area proposed to be annexed may vote at a location within such area as provided by the county election commission.

○ The election commission must certify the election result to the municipal council.

● If a majority of the voters approve the annexation, the council must publish the results of the election. 

● After declaring the election results by resolution, the municipal council must publish in newspaper of general circulation within the municipality a notice containing:

○ A description of the area to be annexed;

○ The code section under which the proposed annexation is to be accomplished;

○ A statement that the qualified electors in the area voted to be annexed; and

○ A statement that the council will approve the annexation, unless at least 5% of the qualified electors within the municipality present a petition to the council within 30 days after the date of the notice requesting that an election be held within the municipality on the annexation.

● If a 5% petition is not presented to council, the annexation may be completed by enacting an ordinance not less than 30 days after publication of the notice.

● If a 5% petition is presented to council, the council must delay final reading of the annexation ordinance, certify the petition to the municipal election commission, and order an election.

○ The election is a municipal election and must be conducted under the provisions of Chapters 13 and 17 of Title 7, SC Code of Laws. 

○ The election commission must give at least 30 days’ notice of the election in a newspaper of general circulation in the municipality. 

○ If a majority of the voters approve the annexation, council shall give final reading to the ordinance declaring the area annexed. 

● If an annexation election is defeated (either by the voters inside the territory proposed to be annexed or by the voters in the municipality), no further annexation election within the territory proposed to be annexed shall be initiated within twenty-four months after the date upon which the voting took place.

● If the governing body adopts an ordinance declaring the area annexed to the municipality, it should then: a. follow SC. Code Sec. 5-3-310 et seq., if property within a special purpose district is annexed; and b. file notice with the SC Secretary of State, SC Department of Transportation, SC Department of Public Safety, and SC Revenue and Fiscal Affairs Office. 

● The 25% petition and election method contains opt-out provisions for freeholders that own at least 25% of the total assessed value of property to be annexed and for freeholders that own at least 10 acres of agricultural real property. 

○ The municipal clerk must give such freeholders written notice of the proposed annexation by certified mail, return receipt requested. No time for this notice is specified, but it should be sent at the time the petition is certified by resolution. 

○ If the freeholder does not reply at least 10 days before the election, the area must be included in the area to be annexed. 

○ If the freeholder files a written notice with the municipal clerk objecting to the annexation, the freeholder’s property must be excluded from the area to be annexed.

Annexation laws in South Carolina favor property owners, as they should. As you can see - no City has the unilateral authority to annex property without property owner’s consent at some level. Annexation is a legal process which must be followed. 

So the next time you see a sign that says “Annexation Hearing”, remember - the property owners requested it and the City must put it on their agenda. ●