ATLANTA --- Georgians trying to handle high gas prices and tough economic times might have more money than they think. And it might be stored in an unexpected place: the Georgia Department of Revenue.
The agency holds about $684 million in unclaimed property, according to the National Association of Unclaimed Property Administrators. Though most of that money has already been spent by the state, a rightful owner can still get the money returned.
The state holds all sorts of property, presumably for owners who have forgotten or abandoned it -- stocks, bonds, cash and even valuables in safe deposit boxes. Some of it is squirreled away in storage areas, but most of the financial assets are sent to the state's general fund.
Only $12 million was claimed by consumers last year.
The practice of holding unclaimed property initially was hailed as a consumer-protection measure, a way to keep banks and other financial institutions from hoarding the cash of forgetful former customers. But some say the laws are instead being used to line the pockets of states looking for revenue anywhere they can get it.
"When they are used the way they were intended, which is as a mechanism to help reunite property owners with their lost or abandoned property, then I think they're a good thing," said John Coalson, an attorney at Alston & Bird in Atlanta who specializes in unclaimed property. "When they're used as a means for states to simply raise money, then I think states ought to call a tax 'a tax' and not just take people's property."
Georgia's collections have been growing, from more than $85.3 million in the 2005-06 budget year to more than $102.4 million in 2006-07. (Figures aren't finalized for the fiscal year that ended June 30.)
State officials say Georgia is doing just what the law is intended to do: Get owners' property in case they someday want it back.
"We love giving money back, and that's what we do," said Kelli Womack, the head of the Department of Revenue's unclaimed property unit.
How long property has to be abandoned before the holder is required to turn it in depends on what it is. For example, employers are supposed to turn over an abandoned paycheck within a year. Most property, though, has to be turned over within five years.
One of the areas that Mr. Coalson has focused on in recent years is states' use of unclaimed property laws to get money from unredeemed gift cards. Unlike other kinds of accounts that fall under the unclaimed property laws, a small gift card often doesn't have a name attached.
"When the state takes it, there's zero chance they're going to return that to me," he said. "They just take it and use it for revenue."
Ms. Womack counters that the cards usually have at least a number attached to them that can be used to prove who the owner is.
"In that kind of situation, if you still have a gift card, you can present the gift card," she said.
Reach Brandon Larrabee at (678) 977-3709 or brandon.larrabee@morris.com.
MISSING MONEY?
IN GEORGIA: To see whether the state has claimed anything that belongs to you, go to www.etax.dor.ga.gov/ptd/ucp/index.aspx and click on "Search for Unclaimed Property in Georgia."
OTHER STATES: To access other databases, go to www.missingmoney.com.
-- Morris News Service
Comments
This seems like a black hole where the state is holding on to these gift cards at the expense of consumers. I think consumers can avoid this by using their gift cards promptly. For those with unwanted gift cards, one way to unload them is to sell them for cash or exchange them for another card. Visit http://www.giftcardrescue.com for more on how to make this happen.
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