Michigan Issues Notice Regarding Unclaimed Property Law Changes
The Michigan Department of Treasury recently issued a notice reminding holders of the new dormancy periods and reporting dates for 2011.
Earlier this fall, as part of its attempts to balance the state budget, Michigan enacted sweeping changes to the state unclaimed property law. Pursuant to the new law, the dormancy period for most property types was reduced from 5 years to 3 years, and significant changes were made to the holder reporting process. The prior version of the law required an unclaimed property report to be filed and property delivered by November 1 for the year ending June 30. The new law leaves that deadline in place, but adds the following reporting dates:
- In 2011, a report shall be filed on or before July 1, 2011 for the 9-month period ending on March 31, 2011.
- For years ending after 12/31/2011, the report shall be filed on or before July 1 of each year for the 12 month period ending on the immediately preceding March 31.
Accordingly, even though most holders filed reports with the state a few weeks ago, for property deemed unclaimed as of June 30, 2010, another report is due July 1 of this year for property deemed abandoned during the period July 1, 2010 through March 31, 2011. Michigan reporting will thereafter switch to the July 1 date (and will be the only state to have such a deadline).
More information is available at the Unclaimed Property Division’s website.