Michigan Enacts Business-to-Business Exemption in Unclaimed Property Act
(June 25, 2012)
Michigan amended its Uniform Unclaimed Property Act on May 24 by enacting Public Act Law 144, which provides a business-to-business exemption. Under the new law, codified as Section 567.257(a), transactions exempted from unclaimed property reporting include credit balances, overpayments, deposits, refunds, discounts, rebates, credit memos, or unidentified remittances created on or after April 1, 2009, and issued, held, due, or owing in any transactions between two or more associations. This exemption does not apply to outstanding checks, drafts, or other similar instruments. In addition, the exemption does not apply to demand, savings, or matured time deposits with a banking or financial institution or to property held in a safe deposit box or repository.
For purposes of the exemption, the new law defines “association” as a business association, public corporation, or any other commercial entity, including a sole proprietorship. This broad definition should benefit a wide range of business organizations. Because of the three-year dormancy period for reporting these items as unclaimed property, the exemption is in effect for unclaimed property reports due on or after July 1, 2013.
For More Information
DISCLOSURE REQUIRED BY U.S. TREASURY DEPARTMENT CIRCULAR 230: Crowe Horwath LLP must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.