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The description for "Constructing a Citadel" says that "If the new culture border claims hexes owned by another Civilization, you will incur a diplomatic penalty as a result."

Does this apply to city states? Are they counted as Civilizations?

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up vote 11 down vote accepted

Yes, you can use a Citadel to steal tiles from an adjacent city state.

Just like with civilizations, doing so will result in a diplomacy hit, though unlike full civilizations, City States are much easier to bribe back into their good graces.

You will lose 50 influence if you are not allied with the City State. If you are allied, you will not lose any influence at all.

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Also worth noting: don't build it on your hex, because you can build it up to one hex outside your territory, even if it happens to belong to the city state. More bang for your buck. – Kyle Baran Oct 29 '14 at 16:42

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