02-14 08:52 H.B. 506
1
Unclaimed Property Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Troy Shelley
Senate Sponsor:
2
3
LONG TITLE
4
General Description:
5
This bill modifies provisions related to unclaimed property.
6
Highlighted Provisions:
7
This bill:
8
▸ provides for the State Tax Commission to share certain identifying information with the
9
unclaimed property administrator for purposes of returning unclaimed property;
10
▸ modifies dates on which unclaimed property held in certain tax-deferred and tax-exempt
11
accounts is presumed abandoned; and
12
▸ makes technical changes.
13
Money Appropriated in this Bill:
14
None
15
Other Special Clauses:
16
None
17
Utah Code Sections Affected:
18
AMENDS:
19
59-1-403, as last amended by Laws of Utah 2024, Chapters 25, 35
20
67-4a-202, as repealed and reenacted by Laws of Utah 2017, Chapter 371
21
67-4a-203, as repealed and reenacted by Laws of Utah 2017, Chapter 371
22
23
Be it enacted by the Legislature of the state of Utah:
24
Section 1. Section 59-1-403 is amended to read:
25
59-1-403 . Confidentiality -- Exceptions -- Penalty -- Application to property tax.
26
(1) As used in this section:
27
(a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
28
(i) the commission administers under:
29
(A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
30
Act;
H.B. 506 H.B. 506 02-14 08:52
31
(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
32
(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
33
(D) Section 19-6-805;
34
(E) Section 63H-1-205; or
35
(F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
36
Charges; and
37
(ii) with respect to which the commission distributes the revenue collected from the
38
tax, fee, or charge to a qualifying jurisdiction.
39
(b) "Qualifying jurisdiction" means:
40
(i) a county, city, or town;
41
(ii) the military installation development authority created in Section 63H-1-201; or
42
(iii) the Utah Inland Port Authority created in Section 11-58-201.
43
(2)(a) Any of the following may not divulge or make known in any manner any
44
information gained by that person from any return filed with the commission:
45
(i) a tax commissioner;
46
(ii) an agent, clerk, or other officer or employee of the commission; or
47
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
48
town.
49
(b) An official charged with the custody of a return filed with the commission is not
50
required to produce the return or evidence of anything contained in the return in any
51
action or proceeding in any court, except:
52
(i) in accordance with judicial order;
53
(ii) on behalf of the commission in any action or proceeding under:
54
(A) this title; or
55
(B) other law under which persons are required to file returns with the
56
commission;
57
(iii) on behalf of the commission in any action or proceeding to which the
58
commission is a party; or
59
(iv) on behalf of any party to any action or proceeding under this title if the report or
60
facts shown by the return are directly involved in the action or proceeding.
61
(c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
62
admit in evidence, any portion of a return or of the facts shown by the return, as are
63
specifically pertinent to the action or proceeding.
64
(3) This section does not prohibit:
- 2 - 02-14 08:52 H.B. 506
65
(a) a person or that person's duly authorized representative from receiving a copy of any
66
return or report filed in connection with that person's own tax;
67
(b) the publication of statistics as long as the statistics are classified to prevent the
68
identification of particular reports or returns; and
69
(c) the inspection by the attorney general or other legal representative of the state of the
70
report or return of any taxpayer:
71
(i) who brings action to set aside or review a tax based on the report or return;
72
(ii) against whom an action or proceeding is contemplated or has been instituted
73
under this title; or
74
(iii) against whom the state has an unsatisfied money judgment.
75
(4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
76
commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
77
Administrative Rulemaking Act, provide for a reciprocal exchange of information
78
with:
79
(i) the United States Internal Revenue Service; or
80
(ii) the revenue service of any other state.
81
(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
82
corporate franchise tax, the commission may by rule, made in accordance with Title
83
63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
84
from returns and other written statements with the federal government, any other
85
state, any of the political subdivisions of another state, or any political subdivision of
86
this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
87
subdivision, other state, or the federal government grant substantially similar
88
privileges to this state.
89
(c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
90
corporate franchise tax, the commission may by rule, in accordance with Title 63G,
91
Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
92
information concerning the identity and other information of taxpayers who have
93
failed to file tax returns or to pay any tax due.
94
(d) Notwithstanding Subsection (2), the commission shall provide to the director of the
95
Division of Environmental Response and Remediation, as defined in Section
96
19-6-402, as requested by the director of the Division of Environmental Response
97
and Remediation, any records, returns, or other information filed with the
98
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
- 3 - H.B. 506 02-14 08:52
99
19-6-410.5 regarding the environmental assurance program participation fee.
100
(e) Notwithstanding Subsection (2), at the request of any person the commission shall
101
provide that person sales and purchase volume data reported to the commission on a
102
report, return, or other information filed with the commission under:
103
(i) Chapter 13, Part 2, Motor Fuel; or
104
(ii) Chapter 13, Part 4, Aviation Fuel.
105
(f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
106
as defined in Section 59-22-202, the commission shall report to the manufacturer:
107
(i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
108
manufacturer and reported to the commission for the previous calendar year under
109
Section 59-14-407; and
110
(ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
111
manufacturer for which a tax refund was granted during the previous calendar
112
year under Section 59-14-401 and reported to the commission under Subsection
113
59-14-401(1)(a)(v).
114
(g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
115
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
116
prohibited from selling cigarettes to consumers within the state under Subsection
117
59-14-210(2).
118
(h) Notwithstanding Subsection (2), the commission may:
119
(i) provide to the Division of Consumer Protection within the Department of
120
Commerce and the attorney general data:
121
(A) reported to the commission under Section 59-14-212; or
122
(B) related to a violation under Section 59-14-211; and
123
(ii) upon request, provide to any person data reported to the commission under
124
Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
125
(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
126
of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
127
Office of Planning and Budget, provide to the committee or office the total amount of
128
revenues collected by the commission under Chapter 24, Radioactive Waste Facility
129
Tax Act, for the time period specified by the committee or office.
130
(j) Notwithstanding Subsection (2), the commission shall make the directory required by
131
Section 59-14-603 available for public inspection.
132
(k) Notwithstanding Subsection (2), the commission may share information with federal,
- 4 - 02-14 08:52 H.B. 506
133
state, or local agencies as provided in Subsection 59-14-606(3).
134
(l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
135
Recovery Services within the Department of Health and Human Services any
136
relevant information obtained from a return filed under Chapter 10, Individual
137
Income Tax Act, regarding a taxpayer who has become obligated to the Office of
138
Recovery Services.
139
(ii) The information described in Subsection (4)(l)(i) may be provided by the Office
140
of Recovery Services to any other state's child support collection agency involved
141
in enforcing that support obligation.
142
(m)(i) Notwithstanding Subsection (2), upon request from the state court
143
administrator, the commission shall provide to the state court administrator, the
144
name, address, telephone number, county of residence, and social security number
145
on resident returns filed under Chapter 10, Individual Income Tax Act.
146
(ii) The state court administrator may use the information described in Subsection
147
(4)(m)(i) only as a source list for the master jury list described in Section
148
78B-1-106.
149
(n)(i) As used in this Subsection (4)(n):
150
(A) "GOEO" means the Governor's Office of Economic Opportunity created in
151
Section 63N-1a-301.
152
(B) "Income tax information" means information gained by the commission that is
153
required to be attached to or included in a return filed with the commission
154
under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
155
Individual Income Tax Act.
156
(C) "Other tax information" means information gained by the commission that is
157
required to be attached to or included in a return filed with the commission
158
except for a return filed under Chapter 7, Corporate Franchise and Income
159
Taxes, or Chapter 10, Individual Income Tax Act.
160
(D) "Tax information" means income tax information or other tax information.
161
(ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
162
(4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
163
GOEO all income tax information.
164
(B) For purposes of a request for income tax information made under Subsection
165
(4)(n)(ii)(A), GOEO may not request and the commission may not provide to
166
GOEO a person's address, name, social security number, or taxpayer
- 5 - H.B. 506 02-14 08:52
167
identification number.
168
(C) In providing income tax information to GOEO, the commission shall in all
169
instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
170
(iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
171
(4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
172
other tax information.
173
(B) Before providing other tax information to GOEO, the commission shall redact
174
or remove any name, address, social security number, or taxpayer identification
175
number.
176
(iv) GOEO may provide tax information received from the commission in accordance
177
with this Subsection (4)(n) only:
178
(A) as a fiscal estimate, fiscal note information, or statistical information; and
179
(B) if the tax information is classified to prevent the identification of a particular
180
return.
181
(v)(A) A person may not request tax information from GOEO under Title 63G,
182
Chapter 2, Government Records Access and Management Act, or this section,
183
if GOEO received the tax information from the commission in accordance with
184
this Subsection (4)(n).
185
(B) GOEO may not provide to a person that requests tax information in
186
accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
187
information GOEO provides in accordance with Subsection (4)(n)(iv).
188
(o) Notwithstanding Subsection (2), the commission may provide to the governing board
189
of the agreement or a taxing official of another state, the District of Columbia, the
190
United States, or a territory of the United States:
191
(i) the following relating to an agreement sales and use tax:
192
(A) information contained in a return filed with the commission;
193
(B) information contained in a report filed with the commission;
194
(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
195
(D) a document filed with the commission; or
196
(ii) a report of an audit or investigation made with respect to an agreement sales and
197
use tax.
198
(p) Notwithstanding Subsection (2), the commission may provide information
199
concerning a taxpayer's state income tax return or state income tax withholding
200
information to the Driver License Division if the Driver License Division:
- 6 - 02-14 08:52 H.B. 506
201
(i) requests the information; and
202
(ii) provides the commission with a signed release form from the taxpayer allowing
203
the Driver License Division access to the information.
204
(q) Notwithstanding Subsection (2), the commission shall provide to the Utah
205
Communications Authority, or a division of the Utah Communications Authority, the
206
information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
207
63H-7a-502.
208
(r) Notwithstanding Subsection (2), the commission shall provide to the Utah
209
Educational Savings Plan information related to a resident or nonresident individual's
210
contribution to a Utah Educational Savings Plan account as designated on the
211
resident or nonresident's individual income tax return as provided under Section
212
59-10-1313.
213
(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
214
Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
215
worker with the Department of Health and Human Services or its designee with the
216
adjusted gross income of an individual if:
217
(i) an eligibility worker with the Department of Health and Human Services or its
218
designee requests the information from the commission; and
219
(ii) the eligibility worker has complied with the identity verification and consent
220
provisions of Sections 26B-3-106 and 26B-3-903.
221
(t) Notwithstanding Subsection (2), the commission may provide to a county, as
222
determined by the commission, information declared on an individual income tax
223
return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
224
residential exemption authorized under Section 59-2-103.
225
(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
226
access line provider that is over 90 days delinquent in payment to the commission of
227
amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
228
Wireless Telecommunications Service Charges, to the board of the Utah
229
Communications Authority created in Section 63H-7a-201.
230
(v) Notwithstanding Subsection (2), the commission shall provide the Department of
231
Environmental Quality a report on the amount of tax paid by a radioactive waste
232
facility for the previous calendar year under Section 59-24-103.5.
233
(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
234
Department of Workforce Services any information received under Chapter 10, Part
- 7 - H.B. 506 02-14 08:52
235
4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
236
Services.
237
(x) Notwithstanding Subsection (2), the commission may provide the Public Service
238
Commission or the Division of Public Utilities information related to a seller that
239
collects and remits to the commission a charge described in Subsection 69-2-405(2),
240
including the seller's identity and the number of charges described in Subsection
241
69-2-405(2) that the seller collects.
242
(y)(i) Notwithstanding Subsection (2), the commission shall provide to each
243
qualifying jurisdiction the collection data necessary to verify the revenue collected
244
by the commission for a distributed tax, fee, or charge collected within the
245
qualifying jurisdiction.
246
(ii) In addition to the information provided under Subsection (4)(y)(i), the
247
commission shall provide a qualifying jurisdiction with copies of returns and other
248
information relating to a distributed tax, fee, or charge collected within the
249
qualifying jurisdiction.
250
(iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
251
executive officer or the chief executive officer's designee of the qualifying
252
jurisdiction shall submit a written request to the commission that states the
253
specific information sought and how the qualifying jurisdiction intends to use
254
the information.
255
(B) The information described in Subsection (4)(y)(ii) is available only in official
256
matters of the qualifying jurisdiction.
257
(iv) Information that a qualifying jurisdiction receives in response to a request under
258
this subsection is:
259
(A) classified as a private record under Title 63G, Chapter 2, Government Records
260
Access and Management Act; and
261
(B) subject to the confidentiality requirements of this section.
262
(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
263
Beverage Services Commission, upon request, with taxpayer status information
264
related to state tax obligations necessary to comply with the requirements described
265
in Section 32B-1-203.
266
(aa) Notwithstanding Subsection (2), the commission shall inform the Department of
267
Workforce Services, as soon as practicable, whether an individual claimed and is
268
entitled to claim a federal earned income tax credit for the year requested by the
- 8 - 02-14 08:52 H.B. 506
269
Department of Workforce Services if:
270
(i) the Department of Workforce Services requests this information; and
271
(ii) the commission has received the information release described in Section
272
35A-9-604.
273
(bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
274
the administrator or the administrator's agent, as those terms are defined in Section
275
67-4a-102.
276
(ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
277
administrator and to the extent allowed under federal law, the commission shall
278
provide the unclaimed property administrator the name, address, telephone
279
number, email address, county of residence, and social security number or
280
federal employer identification number on any return filed under Chapter 7,
281
Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax
282
Act.
283
(B) The unclaimed property administrator may use the information described in
284
Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
285
to the property's owner in accordance with Title 67, Chapter 4a, Revised
286
Uniform Unclaimed Property Act.
287
(iii) The unclaimed property administrator is subject to the confidentiality provisions
288
of this section with respect to any information the unclaimed property
289
administrator receives under this Subsection (4)(bb).
290
(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
291
taxpayer's state individual income tax information to a program manager of the Utah
292
Fits All Scholarship Program under Section 53F-6-402 if:
293
(i) the taxpayer consents in writing to the disclosure;
294
(ii) the taxpayer's written consent includes the taxpayer's name, social security
295
number, and any other information the commission requests that is necessary to
296
verify the identity of the taxpayer; and
297
(iii) the program manager provides the taxpayer's written consent to the commission.
298
(dd) Notwithstanding Subsection (2), the commission may provide to the Division of
299
Finance within the Department of Government Operations any information necessary
300
to facilitate a payment from the commission to a taxpayer, including:
301
(i) the name of the taxpayer entitled to the payment or any other person legally
302
authorized to receive the payment;
- 9 - H.B. 506 02-14 08:52
303
(ii) the taxpayer identification number of the taxpayer entitled to the payment;
304
(iii) the payment identification number and amount of the payment;
305
(iv) the tax year to which the payment applies and date on which the payment is due;
306
(v) a mailing address to which the payment may be directed; and
307
(vi) information regarding an account at a depository institution to which the
308
payment may be directed, including the name of the depository institution, the
309
type of account, the account number, and the routing number for the account.
310
(ee) Notwithstanding Subsection (2), the commission shall provide the total amount of
311
revenues collected by the commission under Subsection 59-5-202(5):
312
(i) at the request of a committee of the Legislature, the Office of the Legislative
313
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
314
or office for the time period specified by the committee or office; and
315
(ii) to the Division of Finance for purposes of the Division of Finance administering
316
Subsection 59-5-202(5).
317
(ff) Notwithstanding Subsection (2), the commission may provide the Department of
318
Agriculture and Food with information from a return filed in accordance with
319
Chapter 31, Cannabinoid Licensing and Tax Act.
320
(5)(a) Each report and return shall be preserved for at least three years.
321
(b) After the three-year period provided in Subsection (5)(a) the commission may
322
destroy a report or return.
323
(6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
324
(b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
325
the individual shall be dismissed from office and be disqualified from holding public
326
office in this state for a period of five years thereafter.
327
(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
328
accordance with Subsection (4)(n)(iii), or an individual who requests information in
329
accordance with Subsection (4)(n)(v):
330
(i) is not guilty of a class A misdemeanor; and
331
(ii) is not subject to:
332
(A) dismissal from office in accordance with Subsection (6)(b); or
333
(B) disqualification from holding public office in accordance with Subsection
334
(6)(b).
335
(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
336
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
- 10 - 02-14 08:52 H.B. 506
337
Legislative Organization, an individual described in Subsection (2):
338
(i) is not guilty of a class A misdemeanor; and
339
(ii) is not subject to:
340
(A) dismissal from office in accordance with Subsection (6)(b); or
341
(B) disqualification from holding public office in accordance with Subsection
342
(6)(b).
343
(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
344
Section 2. Section 67-4a-202 is amended to read:
345
67-4a-202 . When tax-deferred and tax-exempt retirement accounts presumed
346
abandoned.
347
(1) Subject to Section 67-4a-208, property held in a pension account or retirement account
348
that qualifies for tax deferral or tax exemption under the income tax laws of the United
349
States is presumed abandoned if the property is unclaimed by the apparent owner [three
350
years ]after the later of:
351
(a) [the later of] three years after the following dates:
352
(i) except as in Subsection (1)(a)(ii), the date a communication sent by the holder by
353
first-class United States mail to the apparent owner is returned to the holder
354
undelivered by the United States Postal Service; or
355
(ii) if a communication under Subsection (1)(a)(i) is re-sent within 30 days after the
356
date the first communication is returned undelivered, the date the second
357
communication was returned undelivered by the United States Postal Service; or
358
(b) the earlier of the following dates:
359
(i) three years after the date on which the apparent owner becomes [70.5 years of age]
360
the age specified under the income tax laws of the United States by which
361
distribution of the property must occur to avoid a tax penalty, if determinable by
362
the holder; or
363
(ii) one year after the date of the mandatory distribution following death if:
364
(A) the income tax laws of the United States requires distribution to avoid a tax
365
penalty; and
366
(B) the holder receives confirmation of the death of the apparent owner in the
367
ordinary course of the holder's business or confirms the death of the apparent
368
owner under Subsection (2).
369
[(ii) if the Internal Revenue Code, Sec. 1 et seq., requires distribution to avoid a tax
370
penalty, two years after the date the holder:]
- 11 - H.B. 506 02-14 08:52
371
[(A) receives confirmation of the death of the apparent owner in the ordinary
372
course of the holder's business; or]
373
[(B) confirms the death of the apparent owner under Subsection (2).]
374
(2) If a holder in the ordinary course of the holder's business receives notice or an
375
indication of the death of an apparent owner and Subsection (1)(b) applies, the holder
376
shall attempt not later than 90 days after receipt of the notice or indication to confirm
377
whether the apparent owner is deceased.
378
(3)(a) Subject to Subsection (3)(b), if the holder does not send communications to the
379
apparent owner of an account described in Subsection (1) by first-class United States
380
mail on at least an annual basis, the holder shall attempt to confirm the apparent
381
owner's interest in the property by sending the apparent owner an electronic mail
382
communication not later than two years after the apparent owner's last indication of
383
interest in the property.
384
(b) The holder shall promptly attempt to contact the apparent owner by first-class United
385
States mail if:
386
(i) the holder does not have information needed to send the apparent owner an
387
electronic mail communication or the holder believes that the apparent owner's
388
electronic mail address in the holder's records is not valid;
389
(ii) the holder receives notification that the electronic mail communication was not
390
received; or
391
(iii) the apparent owner does not respond to the electronic mail communication
392
within 30 days after the communication was sent.
393
(4) If first-class United States mail sent under Subsection (3) is returned to the holder
394
undelivered by the United States Postal Service, the property is presumed abandoned
395
three years after the later of:
396
(a) except as in Subsection (4)(b), the date a communication to contact the apparent
397
owner sent by first-class United States mail is returned to the holder undelivered;
398
(b) if the communication under Subsection (4)(a) is re-sent within 30 days after the date
399
the first communication is returned undelivered, the date the second communication
400
was returned undelivered; or
401
(c) the date established by Subsection (1)(b).
402
Section 3. Section 67-4a-203 is amended to read:
403
67-4a-203 . When other tax-deferred and tax-exempt accounts presumed
404
abandoned.
- 12 - 02-14 08:52 H.B. 506
405
Subject to Section 67-4a-208 and except for property described in Section 67-4a-202
406
and property held in a plan described in Section 529A, Internal Revenue Code, property held
407
in an account or plan, including a health savings account, that qualifies for tax deferral or tax
408
exemption under the income tax laws of the United States is presumed abandoned if the
409
property is unclaimed by the apparent owner three years after the earlier of:
410
(1) the date, if determinable by the holder, specified in the income tax laws and regulations
411
of the United States by which distribution of the property must begin to avoid a tax
412
penalty, with no distribution having been made; or
413
(2) 30 years after the date the account was opened.
414
Section 4. Effective Date.
415
This bill takes effect on May 7, 2025.
- 13 -