Just The News: Some states are making money from unclaimed property that people may not know the states have.
South Dakota is one of the few states that send profits from abandoned property to their general budget. About 3% of the state’s general fund revenues come from unclaimed property, according to state budget officials. Some states, including Wyoming and Wisconsin, hold on to the property indefinitely.
“Other than Delaware, in no state is unclaimed property a major source of funding,” said Jeremy Dawson, director of the National Association of Unclaimed Property Administrators. “In Illinois in 2018, there was a record amount of unclaimed property remitted to the state treasurer; however, transfers from the unclaimed property trust fund were approximately 0.3% of state revenues. In Louisiana the unclaimed property trust fund is constitutionally protected from use for anything other than paying unclaimed property claims.”
A variety of things classify as unclaimed property, from uncollected utility deposits to a trust.
“All business associations, government entities, public corporations, public authorities, estates, trusts, or two or more persons having a joint or common interest must report abandoned funds to the state of South Dakota after a certain dormancy period, which is typically one to three years depending on property type,” said Jason Williams, South Dakota’s deputy treasurer in an email interview with The Center Square.
When the property isn’t claimed, the money reverts to the state. more here