Recent Blog Posts

  • Local Government Owners of Historic Property Asked to Convey Property by End of 2017: What Public Officials Should Know

    Authored by: on Friday, December 15th, 2017

    Federal tax reform is likely to be enacted before the end of the year. While the final form of the bill has not been determined, it is nearly certain that federal historic preservation tax credits—an important financing mechanism for preservation of historic properties—will be significantly affected. In fact, most observers anticipate that the value of the tax credits will be diminished by tax reform, thereby making historic preservation projects more difficult to finance and complete. For that reason, some real estate developers have asked local government owners of historic properties to convey those properties to new ownership before the end of the 2017 tax year (December 31, 2017) in order to “grandfather” those projects under the older, more favorable rules. This post briefly describes how federal tax reform could affect historic rehabilitation projects and offers some guidance for North Carolina public officials who wish to respond (on a very tight deadline) to a request to transfer historic properties owned by local governments. Read more »

  • Satellite Area Boundaries are Corporate Limits, But Not for Purposes of Contiguous Annexation or ETJ.

    Authored by: on Thursday, December 14th, 2017

    North Carolina annexation law allows non-contiguous, “satellite” annexation by petition, subject to several requirements regarding the size and location of the property to be annexed. Once annexed, these areas are, for almost all purposes, considered to be part of the city: “From and after the effective date of the annexation ordinance, the annexed area and its citizens and property are subject to all debts, laws, ordinances and regulations of the annexing city, and are entitled to the same privileges and benefits as other parts of the city.”  G.S. 160A-58.3.  For two purposes, however—annexation and extraterritorial regulatory jurisdiction—satellite areas are not considered to be part of the municipal corporate limits. Read more »

  • The 2018 Property Tax Calendar Q&A

    Authored by: on Wednesday, December 6th, 2017

    Suffering from insomnia? I recommend keeping a copy of our newly released 2018 Property Tax Calendar on your nightstand.  I’ll admit the calendar is soporific (hey, you try making dates and deadlines read like a Grisham thriller!), but it does provide lots of helpful information for local tax officials.  The calendar is also a great tool for highlighting important features of the Machinery Act.  Here are answers to some of the more common questions about those features that I get every year after releasing the new calendar. Read more »

  • Gap Time and the FLSA

    Authored by: on Friday, December 1st, 2017

    What is “gap time?” The term does not appear in the Fair Labor Standards Act (FLSA) or in the U.S. Department of Labor’s (DOL’s) FLSA regulations. It is, however, used by human resources and payroll professionals and appears in a number of DOL Administrator Opinion Letters. “Gap time” refers to the hours that fall between a nonexempt employee’s regularly scheduled hours and the 40 hours that an employee must work before becoming entitled to time-and-one-half overtime premium pay (for law enforcement officers and firefighters working on a 28-day work schedule it’s 171 and 212 hours respectively). When an employee is scheduled to work 40 hours per week, there is no gap time. But for employees working fewer than 40 hours –37.5 hours per week, for example – gap time is time worked between 37.5 and 40 hours. Do nonexempt employees get paid for gap time? Read more »

  • “Fore!” Golf Carts and Local Taxes

    Authored by: on Wednesday, November 22nd, 2017

    Can local governments levy property taxes on residential golf carts? This seemingly simple question doesn’t have a simple answer.  I say yes, but the NC Department of Revenue says no. A good chunk of money hangs in the balance as golf carts grow more popular and more upscale (check out this faux ’57 Chevy cart listed for $15,000!). Read more »

  • The Old “New Overtime Rule” and a Possible New “New Overtime Rule”

    Authored by: on Thursday, November 16th, 2017

    Whatever happened to the “new” FLSA overtime rule that had been due to take effect last December but was stopped when a federal court in Texas issued a nationwide injunction? Employers, many of whom were none too fond it, can be forgiven for wondering whether the 2016 rule is dead. Unfortunately, you can’t put changes to the FLSA salary test behind you yet: in July, the Trump Department of Labor (DOL) issued a Request for Information, apparently signaling an intention to set a new “new” higher minimum salary for overtime exemption, and in October, the Trump DOL appealed the federal court’s final decision in the new rule case. That decision threw the 2016 rule out. Confused? So are a lot of people. Read more »

  • Pleading Waiver of Governmental Immunity: What’s Enough?

    Authored by: on Tuesday, November 14th, 2017

    In lawsuits against units of local government, the general rule is that the trial court must throw out the plaintiff’s claims if the unit raises the defense of governmental immunity and the complaint fails to allege a waiver of that immunity. This blog post looks at how detailed a waiver allegation must be for a complaint to survive an assertion of governmental immunity. Read more »