Unclaimed Property Unclaimed Legislative Updates By Karen Anderson KPMG, LLP Colorado (effective 7-1-2020) • Decreases certain dormancy periods (including mineral interest property) to 3 years 1 and adopts the “current to pay” concept. 2 • Due diligence specifications will change such that the due diligence minimum will be reduced to $25 from $50 3 , specific language will be required in the due dili- gence notice 4 , the due diligence timing will be modified to 180 days to 60 days before report filing 5 and email will be an option for notice delivery if the owner has consented to receive email from the holder. 6 Maine (effective 10-1-2019) • Due diligence specifications have changed such that specific language is required in the due diligence notice, 7 the due diligence timing was changed to 180 days to 60 days before report filing 8 , and the notice must be sent via both 1st class USPS mail AND email if the owner has consented to receive email from the holder. 9 Nevada (effective 7-1-2019) • Reporting parameters have been modified by eliminat- ing the aggregate limit 10 and by mandating that the holder deliver the report via a portal established by the unclaimed property administrator. 11 • Due diligence specifications have changed to require the notice to be sent via both 1st class USPS mail AND email if the owner has consented to receive email from the holder. 12 Texas (effective 6-20-2019) • Reporting parameters have been modified to require consolidated reporting. More specifically, if a holder that is required to file a property report is part of an affiliated group, the holder must file one report for the entire affiliated group. 13 Also, the reporting require- ments now require that if a holder is required to file a report in any report year, the holder must file a report in each successive year even if it has no unclaimed property to report. 14
Vermont (effective 1-1-2021) • This new law will cause the mineral interest dormancy periods to accelerate to 2 years (from the typical 3 years) if the holder imposes a charge against the owner’s ac- count due to owner inactivity or failure to claim the property within a specific period of time OR if the holder has reason to believe the owner is deceased. 15 • Due diligence specifications have changed such that specific language is required in the due diligence notice 16 , the due diligence timing was changed to 180 days to 60 days before report filing 17 , and the notice must be sent via both 1st class USPS mail AND email if the owner has consented to receive email from the holder. 18 For more information on the topics covered in this article, please contact: Karen Anderson , Director KPMG, LLP / State & Local Tax / Unclaimed Property karenanderson@kpmg.com Ph: 303-382-7020 KPMG Disclaimer: The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.
1 2019 Colorado Senate Bill No. 88, Colorado First Regular Session of the Seventy-Second General Assembly, 2019 Colorado Senate Bill No. 88, Colorado First Regular Session of the Seventy-Second General Assembly, § 38-13-201(m) 2 Id. at § 38-13-209 3 Id. at § 38-13-501(1)(b) 4 Id. at § 38-13-502
5 Id. at § 38-12-501(1) 6 Id. at § 38-13-501(2) 7 Me. Rev. Stat. tit. 33, § 2102 8 Id. at § 2101 9 Id. 10 Nev. Rev. Stat. Ann. § 120A.560 11 Id. at§ 120A.560(11) 12 Id. at § 120A.560(8)(b) 13 Tex. Prop. Code Ann. § 74.105(b) 14 Id at § 74.106
15 2019 Vermont House Bill No. 550, Vermont 2019-2020 Legislative Session, 2019 Vermont House Bill No. 550, Vermont 2019-2020 Legislative Session, § 1473 16 Id. at § 1502
17 Id. at § 1501 (a) 18 Id. at § 1501 (b)
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