Skip to main content

Yearly Archives: 2023

As discussed in previous posts, all NC counties and municipalities received funding from the American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Fund (ARP/CSLFRF). These are federal grant funds that come with eligibility restrictions, compliance requirements, and reporting obligations. The primary reporting vehicle is the Project & Expenditure Report.

North Carolina’s local governments have been inundated with federal funds since the onset of the COVID-19 pandemic in March 2020.  But the complexity and quantity of the rules applicable to the expenditure of those monies have not decreased since the pandemic began.  Federal funds continue to arrive in local government coffers, as they always have, with significant “strings attached.”

North Carolina’s local governments have been inundated with federal funds since the onset of the COVID-19 pandemic in March 2020.  But the complexity and quantity of the rules applicable to the expenditure of those monies have not decreased since the pandemic began.  Federal funds continue to arrive in local government coffers, as they always have, with significant “strings attached.”

Unlike the vast majority of states, North Carolina does not excuse a local government from paying sales or use taxes incident to its purchases solely because it is a governmental entity.  Instead, unless state law exempts a particular type of transaction from sales or use tax, a local government that makes a taxable purchase must either pay sales tax to a retailer or use tax to the North Carolina Department of Revenue (NCDOR).  This blog post explains what North Carolina “use” tax is, when and how North Carolina’s local governments might need to report and pay use tax to NCDOR, and when mos

Unlike the vast majority of states, North Carolina does not excuse a local government from paying sales or use taxes incident to its purchases solely because it is a governmental entity.  Instead, unless state law exempts a particular type of transaction from sales or use tax, a local government that makes a taxable purchase must either pay sales tax to a retailer or use tax to the North Carolina Department of Revenue (NCDOR).  This blog post explains what North Carolina “use” tax is, when and how North Carolina’s local governments might need to report and pay use tax to NCDOR, and when mos