Category: Tax Policy (page 1 of 4)

Are You Calculated or Deeded?

…on a south branch of White Oak on the south south side as follows. Beginning at a pine thence So67W 140 poles to a branch to three pines thence So7Et 120 poles to a post…to the beginning Containing 100 acres more or less.

A county mapper recently contacted me with a question and not surprisingly I had to learn the answer myself to provide an answer. I am not a mapper nor have I had the opportunity to work closely with mappers, so if you can add to this discussion, please do so below through “Leave a Reply”. While searching for the answer, some documents were revealed that I think will be helpful to others.

The issue involved a county that assesses land based on deeded acres, which may include road right of way. The question was whether there is guidance to help establish a county policy identifying assessment best practice regarding situations where deeded acreage may include road right of way or when deeded acreage varies from calculated acreage.  The answer is, yes.

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Acronyms Online, USPAP, PTAX, and PTEP

This post shares some information coming from the recent announcement of USPAP availability online. It’s also a reminder of how to join PTAX, and where to find the latest PTEP calendar.  If you have questions or comments about any of these, please click “Leave a Reply” at the bottom of this post.

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Of Interest to You

In November 2017, the Governmental Accounting Standards Board (GASB) issued an Exposure Draft entitled Accounting for Interest Cost during the Period of Construction.  The GASB is proposing a standard that would significantly change the way certain interest costs are accounted for during the period of construction of capital assets.  And (for once) for the better!  If approved in its current form (and I do not anticipate any real challenges to this proposal), governmental entities would simply recognize interest as an expense or an expenditure in the period it’s incurred, whether or not it is during the construction period.  As such, there would be no further interest capitalization to calculate and report.

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Maybe We Should KISS and Make Up

KISS is only one acronym or abbreviation for the minimalist approach I’m referring to in this post. Another popular way to put it is “less is more”. Maybe my favorite is “simplicity is the ultimate sophistication”.

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Upcoming Workshop: Implementing Field Experiments for Innovation and Success

Good morning!  I wanted to make people aware that there will be a free workshop on 12/13 from 11-12 as a pre-conference event for the North Carolina Local Government Budget Association’s Winter Conference (NCLGBA).  This year’s NCLGBA conference is in Durham at the Washington Duke Inn.

Implementing Field Experiments for Innovation and Success

Is your service delivery not as effective as it should be? Could your department streamline current processes?   Do you see problems in your organization but lack ideas on how to address it?  If so, this is the pre-conference workshop for you.

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Municipalities and the Great Recession

Much has been written about the impact of the Great Recession on state governments and larger cities, but we have yet to see deep analysis on how smaller municipalities weathered the recession. To get the ball rolling my students and I have analyzed the impact of the recession on smaller cities in Georgia and Florida and are currently adding an additional eleven states to the analysis. To begin we selected two states that have somewhat different revenue structures:

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State Collection of County Financial Data Sources

By Zach Mohr and Madison Esterle

One of the fundamental problems for local government public budget and finance research in the United States is the availability of audited financial data in a format that is easy to collect and analyze. This is a problem for both researchers that are trying to assemble large data sets and for practitioners that live in states that do not have centralized collection of this data. It is also a problem for cross state data collection, which is quite common for local jurisdictions that live on the borders of states. Undoubtedly, there is much duplication of effort and a great need for local government financial information that is comparable for research and practice.

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Running a Successful PUV Auditing Program

“Don’t mess with the farmers!” I’ve heard these words of wisdom a few times in my career, always from well-meaning individuals who had come out on the wrong side of a PUV auditing program. They had come to the conclusion that it wasn’t politically feasible to conduct stringent audits of their farms in the present use program, and that the county was better off letting everyone but the most egregious non-qualifiers go through.

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Transparency with your Business Personal Property Audit Program

Possibly the most well-known method of delivering the mission of the School of Government is through teaching. But to me personally, another very important delivery method is through advising. Last year, 45 faculty and other professionals at the School of Government reported 13,105 advising events. I hope my individual advising can become an increasingly valuable resource for you. I believe I can be more valuable to everyone when you individually ask me to be involved. A couple of weeks ago, I had the opportunity to provide advice on a presentation. The Randolph County commissioners requested the assessor’s office to do something that makes government better in my opinion. The request was to be more transparent and informative for their taxpayers, but more specifically regarding the county’s business personal property (BPP) tax audit program. The assessor’s office was asked to put together a presentation on their program and they asked for my ideas. I want to share some of those ideas so you will hopefully share your thoughts in the comments section and we can grow this resource for everyone’s use. Maybe this post can be a tool for collaboration. Continue reading

Autonomous Vehicles are coming, is your city ready?

Do you want your bonds to kill your city’s bond ratings?

Do you want your bonds to go into default?

Do you want to be responsible for a backlash against the mayor/council for not planning for a future you should have known was coming?

Do you want your city to become even more clogged with traffic, but this time the cars are empty and slowing everyone down?

Ignoring autonomous vehicles (AVs) may be possible today, but just know, they are coming soon–and by soon I mean this year (2017). While AVs may not yet be mainstream transportation today, do not count on it just being something your grandkids use. Cities have to start planning now, or their leaders will be saying YES (begrudgingly) to those questions above. A new report out from the folks at the Sustainable Cities Initiative at the University of Oregon is looking to help you deal with these questions. You can read our report here.

AVs will be on the roads in substantial numbers in the next 10 years, and taking on a substantial share of transportation needs in 20 (or less). Uber wasn’t a ‘thing’ that we did until March 2009—and not a lot of us were using it then. Today people are selling off one or more of their cars because they just use Uber/Lyft instead. And while we like the idea of having the freedom to go whenever, wherever we want in our cars, they are not used all that often—sitting idle 95, yet costing us ten percent of our budgets.

E-commerce is here and growing larger each year. When Amazon started in the 1990s no one could have imagined that this online bookstore would transform into one of the world’s largest companies. Brick and mortar stores nationwide are closing, transforming our Main Streets and shopping malls. In some cities, you can make your order and receive the goods the same day—this trend will certainly extend to more and more people globally as the reach of e-commerce extends further and further into our shopping habits.

The combination of e-commerce and AVs will (and may already be) reshape our cities.  Regardless of your desire to use an AV or not or shop on Amazon, they transformations will have an effect on our cities. Many cities have huge investments in on-street parking and parking garages to allow us to park near where we are going. Yet if an AV is driving us and dropping us off at our destination, cities won’t get to collect that revenue anymore and have a hard time paying off those revenue bonds. Think this is a problem for the future? Think again! Cities are already feeling the heat because so many people are using shared vehicle services like Lyft. Airports have seen substantial drop offs in parking revenue, taxi revenues, and rental car revenues. This is without accounting for what AVs will do, just what shared vehicles services are ALREADY doing—and they are just getting started.

This report takes you through a city’s budget—both revenues and expenditures—and starts to think about what could happen as AVs become common place and e-commerce takes on an even larger role in retail. City leaders have to start planning for this future now if they want to have a voice in what AVs/e-commerce will do to their cities. AVs create a “potential rat’s nest of a budgeting challenge” (Fung 2016). This paper seeks to begin the process of untangling that rat’s nest, and provide the foundation for future phases of the project that will consider potential additional revenue sources to fund the infrastructure changes that may come from the integration of AVs and more widespread e-commerce.

Benjamin Y. Clark is an assistant professor of public administration in the School of Planning, Public Policy and Management at the University of Oregon. His research focuses on autonomous vehicles, public sector crowdsourcing, 311 systems, coproduction, local government management, and budgetary/financial management.  He teaches public management, public policy, and the applied research Capstone course. He has been an Executive Committee member of the Association for Budgeting and Financial Management (ABFM) since 2013. Prior to his career in academia, he worked for nearly a decade as a public servant at the local, federal, and international levels.

 

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