New Jersey has many different types of property that are subject to its Unclaimed Property laws. If a New Jersey business holds onto tangible or intangible property that has not been claimed by its owner for a certain period of time, then this property is required to be turned over to the Unclaimed Property Administration.
Common examples of unclaimed property are uncashed checks including paychecks, credit balances in accounts receivable, and other unclaimed payments. In response to losing a court case, New Jersey has enacted legislation related to gift cards, traveler's checks and money orders. The abandonment period has been reduced for traveler's checks (from 15 years to 3 years) and for money orders (from 7 years to 3 years).
New Jersey has created a 2-year abandonment period for stored value cards which include gift cards, gift certificates and rebate cards sold by a business.
There is an exemption for businesses that sold $250,000 or less in gift cards in the prior year, and other businesses can apply for an exemption.
New Jersey has published a letter indicating that it is expecting nonexempt businesses to file with the Unclaimed Property Administration before November 1, 2010, for cards outstanding on or after July 1, 2010, including cards issued before that date. The state is limiting its reach-back period for gift cards to five years for those who timely file before November 1.
For additional information, please contact
your Engagement Principal or
Peggy Tilles, JD, LLM
|
