California Issues Quarterly Newsletter; Veiled Threats
The California State Controller’s office has issued its most recent quarterly newsletter for holders of unclaimed property. The newsletter contains a listing of common reporting errors made by holders of unclaimed property, as well as a helpful listing of upcoming dates and deadlines.
The primary substance of the newsletter, however, is a reminder from California about the appropriate “rules of jurisdiction.” While the entry purports to provide a “remind[er]” about the jurisdictional reporting rules, it is also clear that California issuing a thinly-veiled warning to holders that all California property (no matter how de minimis) should be reported to California as opposed to other states.
Among the warnings:
- Even if a another state is willing to receive “incidental” California items, California will still assess an “interest penalty”;
- Late reports will be subject to a “late filing interest assessment”;
- Other states cannot indemnify a holder for California property delivered to another state.
The latter warning is odd. Technically, whether or not the receiving state can indemnify a holder for anything is, quite obviously, up to the receiving state. Nonetheless, the point is that California will not abandon its pursuit of a holder simply in light of evidence that Califonria property was reported elsewhere.