Settlement watched for impact on Delaware budget
State officials have settled a major lawsuit over unclaimed property collections after a federal judge blasted Delaware for overzealous pursuit of revenue.
The case has been closely watched because of its significant implications for state government's budget. Unclaimed property brings in about half a billion dollars each year.
Temple-Inland Inc. sued after state officials demanded $1.4 million in uncashed payroll checks and accounts payable. The state came to that amount by using technical estimates of what the company would owe going back to 1986, even though the firm didn't keep records going back that far.
Under federal rules, unclaimed property — things like un-cashed checks or money orders — goes to the state in which the company holding those assets is incorporated if no address for the owner is available. Delaware is the legal home to many of the country's corporations — Temple-Inland is incorporated here even though it is based in Texas — so it reaps far more from unclaimed property than other states. It is the third-largest revenue source for state government.
Read more: http://www.delawareonline.com/story/news/local/2016/08/08/unclaimed-property-settlement/88387730/
