MICHGAN PASSES UP B2B EXEMPTION, WITH LIMITATIONS: : Unclaimed Property News and Discussion Blog
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MICHGAN PASSES UP B2B EXEMPTION, WITH LIMITATIONS:

by Tracey Reid on 06/12/12

MICHGAN HOUSE BILL 4563 - B2B EXEMPTION, WITH LIMITATIONS:  signed into law on 5/24/2012, MI H.B. 4563 says that state's unclaimed property law "does not apply to any credit balances, overpayments, deposits, refunds, discounts, rebates, credit memos, or unidentified remittances created on or after April 1, 2009 and issued, held, due, or owing in any transactions between 2 or more associations. This exemption does not apply to outstanding checks, drafts, or other similar instruments.”  Great for businesses, but don't forget that CHECKS are EXCLUDED!  Michigan joins Florida in limiting their B2B unclaimed property exemption to credit memos and the like, while still claiming that checks that are issued to represent those balances are escheatable.  There are a dozen other states, including:  AZ, IL, IN, IA, KS, MA, MD, NC, OH, TN, WI & VA, with more generous Business to Business exemptions, but every little bit helps!  For the complete history of the bill click on :  http://legislature.mi.gov/doc.aspx?2011-HB-4563

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