State and Local Tax Alert - October 2013

October 2013

On October 15, 2013, proposed legislation that was previously passed by the Michigan House of Representatives (the “House”) passed the Michigan Senate that would amend the Uniform Unclaimed Property Act (the “Act”) to impose certain standards regarding the conduct of unclaimed property audits. It would require the State Treasurer to perform all unclaimed property examinations based on generally accepted auditing standards and would allow the amount of any abandoned or unclaimed property due and owing to be based on a reasonable method of estimation only if the person being examined did not have substantially complete records.

Also, on September 24, 2013, proposed legislation was passed by the House that would establish an administrative process to appeal a determination by the Michigan Department of Treasury that a holder of abandoned or unclaimed property had under-reported the amount of abandoned or unclaimed property that should be escheated to the State.