An Illinois bill could remove exemptions on unclaimed property reporting requirements for gift cards and property resulting from B2B transactions—and could require retroactive reporting of such property received as far back as 2003. Illinois unclaimed property law currently applies only to a very limited scope of gift cards and expressly exempts property resulting from B2B transactions, such as credits, overpayments, uncashed checks and rebates. Introduced earlier this year in the Illinois House, the bill would remove those exemptions, requiring reporting of gift cards and property resulting from B2B transactions.
Beyond removing the exemptions, the bill also contains a provision that would require reporting of such property “that would have been presumed abandoned during the 10-year period preceding the effective date of this act,” according to the bill. As introduced, the bill would be effective Jan. 1, 2018. Under Illinois law, gift cards must be dormant for five years before becoming considered unclaimed property and escheatable to the state—meaning that holders would be required to report gift cards and B2B property with last contact dates up to 15 years previous on their 2018 reports.
The bill was re-referred to the rules committee on March 31, meaning it missed the cross-over deadline to be considered before Illinois Senate before the General Assembly adjourns its Spring session on May 31. However, the proposal still could be carried over into the next session.
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