Your city or town may be holding unclaimed property that should be reported to the State of South Carolina.
The South Carolina Uniform Unclaimed Property Act requires all entities holding unclaimed property to remit the property and file an annual report with the South Carolina State Treasurer's Office Unclaimed Property Program (commonly referred to as the Palmetto Payback Program).
Unclaimed property includes, but is not limited to, wages, insurance proceeds, customer deposits and credit balances which have remained unclaimed by the rightful owner for a specified period of time. The dormancy period for wages and utility deposits is one year; five years for outstanding checks, insurance proceeds and credit balances.
The Act requires all holders of unclaimed property to examine their records each year to determine whether they have any unclaimed property, regardless of the amount, as of June 30.
If there is unclaimed property, the entity has to perform its due diligence. No more than 120 days before filing the report, the property holder must send a written notice to the apparent owner notifying him about the unclaimed property and note it will be remitted to the state if he does not reply. The notices only need to be sent for accounts of $50 or more and do not need to be sent to addresses already determined to be incorrect. A sample notice is available on the Palmetto Payback's website.
If the holder cannot locate the owners or the owners do not claim their property, the property must be remitted to the state treasurer's office along with a report including the names and last-known addresses of the owners. Although holders are not required to send a notice for accounts with less than $50, they must still include them on the report and remit the accounts to the treasurer's office.
Holders must file the reports, with remittance, each year before November 1. Payment can be made by check, ACH or bank wire. The Payback Program's staff grants extensions on a limited basis. Entities must request an extension prior to November 1.
The reports must be submitted electronically (via email or CD) in the format prescribed by the National Association of Unclaimed Property Administrators. There is free reporting software available on the state treasurer's website to help entities create an NAUPA-formatted file. To protect the individual's personal information, files must be encrypted or password protected.
Throughout the year, the Palmetto Payback staff looks for property owners while also waging an aggressive statewide outreach campaign that includes various forms of traditional and new media. The Palmetto Payback Unclaimed Property database on the state treasurer's website is updated weekly so potential claimants can have up-to-date online access to the unclaimed property listing.
The Unclaimed Property audit team routinely performs examinations, which focus on assisting entities with reporting unclaimed property and verifying compliance with the Act. Entities that have never reported or have gaps in their reporting histories will be given priority when assigning compliance examinations. Interest and penalties may be assessed on unclaimed property not remitted as required by state law.
Entities can avoid penalties by voluntarily reporting any past-due property. To do this, contact the state treasurer's office and request a Voluntary Disclosure Agreement.
Unclaimed property representatives are available by telephone (803.737.4771) or email (payback@sto.sc.gov) to help holders comply with the unclaimed property law. Additionally, representatives are available for on-site consultation.
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