Author: Jeremy Krenek

This author has written 5 articles

California Property Tax Exemptions

The majority of people who live in or near California have heard the term Prop 13 at some time or another.  Prop 13 caps increases in property taxes if the property owner meets certain requirements.  A somewhat less known law in California is Prop 60 and Prop 90 (sometimes referred to as Prop 60/90), which amended the California Constitution.  This exemption allows a resident that is 55 or older, in certain circumstances, to sell his/her property and replace it with another while maintaining the Prop 13 tax basis on the original property.  There are many restrictions and rules to using Prop 60/90, some of which are discussed below.

To qualify for
Prop 60/90, the resident must be over the age of 55 or a severely and permanently disabled person.  Next, the replacement dwelling must be of equal or lesser value and be purchased within two years of the sale of the original property.  In most circumstances, this exemption may only be used once.

Ten counties have adopted ordinances that allow residents to take advantage of Prop 60/90 even when relocating to/from other counties.  However, if your property is not located in one of these counties the replacement property must be in the same county as the original property. There are other requirements that must be met under Prop 60/90 but this law can be a great way for someone to relocate while maintaining their property tax basis.  This allows for mobility of many seasoned Californians looking to downsize.  If you would like to learn more about this property tax exemption and whether you qualify, do not hesitate to contact our office.

Residential Leases – What is Missing from your Lease Agreement

What’s missing from the residential lease you drafted?

DIY Leases

As we near the end of the summer, the housing market is hot.  The rental market is even hotter.  Landlords are seizing opportunities to rent their property due to the shortage of rental units in our area.  We often see landlords and tenant entering into written leases that were either drafted by a non-lawyer or downloaded off of the internet (we often refer to these as the DIY (Do It Yourself) Lease). These leases are often missing key terms which make it very difficult for either party to enforce the terms of the lease.   NRS 118A.200 sets forth a number of provisions and clauses that must be contained in a residential lease agreement, otherwise, the lease is considered unlawful.  For example, one provision that is often omitted from a DIY lease is that a tenant has the right to display the flag of the United States. While this may seem obvious or unnecessary to include for some landlords, failure to do so violates NRS 118A.200.

Bear Box (Bear Proof Trash Container)

NRS Lease Provisions

Even if a lease includes the provisions as required by NRS 118A.200, many leases we see are contractually deficient and can expose the landlord to liability.  We often see leases that do not contain terms that related to local and property specific factors.  For example, in the Lake Tahoe area, securing trash in bear-proof containers is a great concern due to the wildlife that lives here.  Failure to properly secure trash can lead to severe fines against the property owner as well as bears being deemed a nuisance and subsequently euthanized.  Any lease in the Lake Tahoe area should include specific provisions relating to wildlife and trash so that it is clear that the tenant is responsible for securing trash and will be held accountable for the tenant’s failure to adequately do so.  This is just one of many location-specific examples in the Lake Tahoe area but it should be noted that almost every geographic location in Nevada and California has specific issues that should be addressed in the lease.

Having an attorney draft, or at least review, your lease is relatively inexpensive and is certainly less expensive than attempting to enforce an unlawful or invalid lease.  If you would like us to take a look at your lease or draft one for your rental property, do not hesitate to contact us.

Marijuana Tenants Update – March 2018

In October, 2015, Incline Law Group published a blog about how the state laws regarding medical marijuana, along with the issuance of the Cole Memo, impacted landlord tenant law.  The article compared the dynamics between the California and Nevada State Laws with that of the Federal Government along with the Federal Government’s ability to prosecute those who violate the federal marijuana laws.

Since that time, both California and Nevada have legalized recreational marijuana.  However, the federal government still considers marijuana to be a Schedule 1 drug, making it illegal for both medical and recreational users.  Former Deputy Attorney General James Cole released the “Cole Memo” in August 2013, which provided guidance to federal prosecutors with regard to marijuana prosecution.  The Cole Memo essentially directeMarijuana Leasesd federal prosecutors not to prosecute certain uses of marijuana if the use did not violate the local state law, which has allowed the industry to blossom.  The Cole Memo also provided landlords who rented to tenants that were involved in the marijuana business a sense of security so long as the landlord and tenant complied with local laws.

In January, 2018, current Attorney General Jeff Sessions, announced the withdrawal of the Cole Memo.  As previously mentioned, the federal government has the right to seize property used in the cultivation, manufacturing or selling of cannabis.  This can include real property where the owner is merely a landlord who does not participate in the cannabis business.  Under the guidance of the Cole Memo, this risk had been significantly reduced.  Now, due to the withdrawal of the Cole Memo, it is expected that prosecution of all marijuana related crimes, whether or not legal under state law, will increase.  This means that any landlord who has a tenant in the marijuana industry, or even a recreational user who is growing their own plants for private use, again risks prosecution under federal law, including, but not limited to the government seizing the landlord’s property.

While the Cole Memo was not legally binding, it provided many landlords with enough confidence that they would not be prosecuted for renting to those in the marijuana industry.  However, all leases must now be revisited based on the withdrawal of the Cole Memo or landlords could be subject to criminal penalties.

If you have questions about your lease and what your legal risks may be, please contact our office.

(Published March 2018)

Do you hire employees or independent contractors? The answer is probably both.

Do you hire employees or independent contractors? The answer is probably both.

Employers routinely consider a number of factors in whether to hire an employee or an independent contractor as their business grows.  It is important for businesses to be able to explain why the “independent contractor” the company just hired is actually an “employee” under the law or vice versa.  SB 224, recently passed by the Nevada legislature and signed by Governor Sandoval went into effect on June 2, 2015.  This law provides much more clear guidance on what qualifies for “independent contractor” status and what doesn’t.  SB 224 creates a conclusive presumption that an individual is an independent contractor for Nevada wage and hour claims if certain conditions are met. Do you hire employees or independent contractors?

This is yet another list of “factors” that business owners and their respective counsel must become familiar.  Of potentially greater importance will be determining which law will apply and when.  There is a different test in determining the employment classification of a person in each of the follow circumstances: (1) wage and hour claims under Nevada law; (2) wage and hour claims under federal law; (3) workers compensation claims; (4) and unemployment claims.  It is entirely possible that under the wage and hour law in Nevada an individual could be considered an independent contractor, but if terminated, the individual could file for unemployment and be classified as an employee.

While some of the factors in each test overlap, using all the factors in each test will, in many cases, result in different classifications for the same individual.  It is now more important than ever to consult your legal counsel to protect your business so that you can properly structure job descriptions for your employees and/or independent contractors to benefit your business as well as plan for the changes in classification that may occur in the event of injury (worker’s compensation claims) or termination (unemployment claims).

If you need more information or have any questions regarding how the new law may affect your business, do not hesitate to contact Incline Law Group, LLP for some clarity on the subject.

MEDICAL MARIJUANA DISPENSARIES TO OPEN SOON IN NEVADA

By Jeremy L. Krenek, Attorney, Incline Law Group

The legalization of marijuana has become a hot topic over the past decade as campaigns to legalize have gained serious support. States like Colorado and Washington have legalized marijuana for recreational use. Currently, 22 states, including Nevada and California have legalized marijuana for medical purposes if prescribed by a licensed physician. While Nevada passed its first medical marijuana law in 2000, it just recently passed a law (2013) allowing for medical marijuana dispensaries to open causing great debate.

Opponents of legalization are concerned with increased crime rates, increased substance abuse among both adults and adolescents, and a potential increase of dangerous drivers on the road (DUIs). Even though there are numerous states that have legalized medical use of marijuana, it is still too early to tell whether these concerns will actually come to fruition.

On the other hand, proponents are concerned because, while marijuana may be legal at a state level in some circumstances, it is still a federal crime. Since federal law preempts conflicting state law, those who have a medical marijuana card issued by a state can still be arrested and charged with a federal offense. This example has been on display for the entire nation to witness over the last couple of years in California where the federal government has made it a priority to crack down on an over billion dollar a year pot industry.

While both sides of the debate may have legitimate concerns, Nevada residents should take comfort in the fact that Nevada is familiar with regulating a product that not everyone wants to see legalized. Nevada has a regimented process for approving gambling licenses across the state. Many of the same guidelines will likely be utilized when it comes to marijuana dispensaries. Strict guidelines regulate those who can open a dispensary as well as oversee their management. The application process for opening a dispensary has numerous guidelines and checks that must be followed carefully in order to have an application considered. Counties also have the ability to impose further restrictions and guidelines including regulations as to where dispensaries can be located within each county.

Those with the goal of opening a dispensary have many legal hoops to jump through. Only time will tell the effect legalization of marijuana will have on our nation. Until then, hopefully the rules and regulations that are in place will help circumvent any negative effects the new legislation will have across our nation.

Call Now Button