Michigan must reform the Uniform Unclaimed Property Act (also referred to as Escheats) in business-to-business transactions. Unfortunately, reforming this medieval-style law has proved difficult in years past because state government has come to rely on this money as a revenue stream...even though it's not the state's money to spend!
Did you know:
- The escheats law oversees what happens to so-called "unclaimed" or "abandoned" property, yet when it comes to business-to-business transactions, the law is an archaic and unnecessary requirement that serves little purpose in modern times.
- Recently, many Michigan Chamber members received a Notice Regarding Unclaimed Property Voluntary Disclosure Program from the Michigan Department of Treasury. This notice has caused great confusion among the business community, but more importantly, it highlights the fact that this state law is just another example of a burdensome hurdle to doing business and growing jobs in Michigan.
- Michigan has an aggressive unclaimed property audit program relying on contingency-paid third-party firms (i.e., government-sponsored revenue bounty hunters), who hypothetically extrapolate to determine what has supposedly been "abandoned."
- As a member of the Michigan Chamber, you are in the best position to determine whether another business holds your property and how to handle your own transactions. Government does not need to interject itself in the middle of these business transactions.
The state must stop meddling in the free market and allow Michigan's entrepreneurs and job providers to focus on growing businesses through job expansion; not fighting with the state and auditors.
Stand up for the Michigan business community and urge your State Senator to support House Bill 4563, which would exempt business-to-business transactions from Michigan's burdensome Unclaimed Property Act. The bill has already passed the State House and is awaiting final action in the Senate.
For further information or an update, please contact Tricia Kinley at 517-371-2100 or firstname.lastname@example.org.