Budget season is in full swing for most local governments across the state. Managers, budget officers, department heads, and others are busy compiling expenditure requests and identifying potential revenue sources to balance the budget for the fiscal year that begins on July 1. Elected officials in many jurisdictions have been actively involved in setting policy and funding priorities for the unit. They are preparing to make difficult choices as to which projects and services to undertake, and which initiatives to postpone or even abandon.

In Union County Board of Education vs. Union County Board of Commissioners, ___ N.C. App. ___, No. COA14-633 (Apr. 7, 2015), the North Carolina Court of Appeals reversed a trial court judgment in favor of the Union County Board of … Read more

In Union County Board of Education vs. Union County Board of Commissioners, ___ N.C. App. ___, No. COA14-633 (Apr.

In Union County Board of Education vs. Union County Board of Commissioners, ___ N.C. App. ___, No. COA14-633 (Apr.

Foreclosure is a powerful collection remedy of last resort for property taxes that are a lien on real property.  Because property tax liens generally have super-priority, local governments almost always get paid first from the proceeds of a foreclosure sale. … Read more

Foreclosure is a powerful collection remedy of last resort for property taxes that are a lien on real property.  Because property tax liens generally have super-priority, local governments almost always get paid first from the proceeds of a foreclosure sale. That preferred priority for tax liens also means the mere threat of a foreclosure action will often prompt mortgage lenders to pay the delinquent taxes because their (usually much larger) mortgage liens will be extinguished by a foreclosure sale.

Foreclosure is a powerful collection remedy of last resort for property taxes that are a lien on real property.  Because property tax liens generally have super-priority, local governments almost always get paid first from the proceeds of a foreclosure sale. That preferred priority for tax liens also means the mere threat of a foreclosure action will often prompt mortgage lenders to pay the delinquent taxes because their (usually much larger) mortgage liens will be extinguished by a foreclosure sale.

Suppose Billy Blue Devil owes $2,000 in delinquent taxes for 2012, 2013 and 2014. Billy mails the tax office a check for $500 with no note or instructions about what taxes he is paying. What should the tax office do … Read more
The post Allocating Tax Payments appeared first on Coates’ Canons NC Local Government Law.

Suppose Billy Blue Devil owes $2,000 in delinquent taxes for 2012, 2013 and 2014. Billy mails the tax office a check for $500 with no note or instructions about what taxes he is paying. What should the tax office do with that check? Cash it, of course. But after that, how should the tax office allocate the $500 among the various taxes Billy owes? This is a very popular question, one that the Machinery Act doesn’t answer.

Suppose Billy Blue Devil owes $2,000 in delinquent taxes for 2012, 2013 and 2014. Billy mails the tax office a check for $500 with no note or instructions about what taxes he is paying. What should the tax office do with that check? Cash it, of course. But after that, how should the tax office allocate the $500 among the various taxes Billy owes? This is a very popular question, one that the Machinery Act doesn’t answer.