Proposed Model Unclaimed Property Act

Position: The proposed Model Unclaimed Property Act (the “Model Act”) being considered by the General Statutes Commission for potential legislation during the 1999 long session must be revised substantially to be consistent with the way business is actually conducted. The Model Act, in its current form, does not treat business to business transactions fairly and equitably. NCCBI recommends that the Model Act be referred to a study commission or other appropriate venue to be considered more fully and objectively.

Explanation:  NCCBI members have serious reservations about deficiencies in the Model Act.  The deficiencies generally fall into two categories. First, certain provisions of the Model Act may not be constitutional because they go beyond settled U.S. Supreme Court precedent. In its current form, the proposed Model Act creates orders of priority, burdens of proof, and estimation methodology that are contrary to holdings of the U.S. Supreme Court. Second, the Model Act gives the State’s Treasurer far too much power and discretion in administering unclaimed property laws, particularly with respect to the burden placed on holders to prove that certain property should not be subject to escheat; the hiring of auditors, potentially on a contingent fee basis; the conduct of audits; and the imposition of penalties.

There are significant problems with the Model Act.  Unless it can be revised to be consistent with U.S. Supreme Court precedent, so business to business transactions are treated fairly and equitably, and the absolute power and discretion of the Treasurer limited, the General Statutes Commission should not recommend that the legislature consider the Model Act in its current form in the 1999 long session. In the event that the Model Act is considered as a bill during the next session, we urge that it be revised substantially.

Continue N.C. Budget Reform

Contingent Fee Audits

Defining "Doing Business" In North Carolina

Property Tax Exemptions For Construction In Progress And Product Samples

Machinery Tax And Sales Tax

Change The Net Economic Loss (Nel) Carryover

Remove Credit Balances From The Definition Of Unclaimed Property

Remove Inventories From Franchise Tax Base

Sales Tax Discount

Single Sales Factor
Allow an R&D Credit for the Actual Amount of N.C. Expenditure