Unclaimed Property Generates Big Revenues for States
The Big Number: 14%
That’s the proportion of Delaware’s gross revenue directly attributable to unclaimed property.
Unclaimed property fees are an important—and growing—source of revenue for the state of Delaware.
Those fees totaled $566.5 million last year, accounting for 14% of the money the state collected during the fiscal year ended June 30. That’s up from 13% in fiscal 2012 and 11% in fiscal 2011.
Unclaimed property includes uncashed checks, unused gift cards or certificates, life-insurance benefits, dormant bank accounts and stock dividends which belong to or have been issued to a client but which have never been collected.
By law, companies must turn over unclaimed property to the state where they are incorporated if they can’t locate the owner. The states routinely liquidate the items and return their cash value to any claimants who later come calling.
It is relatively rare for consumers to claim such items, making unclaimed property a large revenue generator for the states. Last year, for example, Delaware returned just $13.2 million to consumers, or 2% of its total collections.
During the past fiscal year, unclaimed property was third only to personal income taxes, which accounted for 33% of Delaware’s gross revenue, and franchise taxes—the fees paid by companies incorporated in the state—which accounted for 15%.
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