It's Your Money - Take It!
Many people and even businesses have money to claim and other assets belonging to them that they may not even know are available to them.
This article highlights two State of Arkansas programs that could result in an unexpected windfall to some degree for those that qualify.
The first, and likely most well known due to recent publicity efforts, is the Great Arkansas Treasure Hunt, a flashy name for the more official name, the Arkansas Unclaimed Property Service.
This service is administered by the Auditor of State's office. It is the mission of that office to return unclaimed property to its rightful owners or heirs.
Each year, businesses and government agencies also known as "holders" report millions of dollars to the state. The state then attempts to reunite owners with their lost assets.
Unclaimed property includes, but is not limited to, savings and checking accounts, unpaid wages or commissions, stocks, bonds, utility deposits, insurance proceeds, cashier's checks, money orders, and contents of safe deposit boxes.
According to State Auditor Andrea Lea, "more than $280 million in unclaimed assets are waiting to be claimed. These properties may include: stock certificates, bonds, uncashed payroll checks, utility deposits, bank accounts, content from safety deposit boxes, and more. I encourage you to search your name or the names of friends and family to see if you or anyone you know has something to claim! You won't know until you try."
And they've made it pretty easy! You can fill out a search form with some basic information at www.claimitar.com. For more information, as well as some Frequently Asked Questions, go to http://auditor.ar.gov/search-for-property.
It never hurts to hunt, and who knows, you just might come away with a pleasant surprise!
Another little known and often overlooked source of funds for businesses and other similar organizations is the possibility to receive rebates of local sales taxes paid on business purchases that exceed a certain amount.
For a little background, not long ago, there was a cap on how much local (city or county) sales tax could be charged on a single transaction. Such tax could only be charged on purchases up to $2,500. So, for example, if you bought $10,000 worth of furniture on a single invoice, the local sales taxes could only be assessed on up to the $2,500 limit.
All that changed a few years ago when the legislature repealed those provisions. When they did, however, they replaced them with a new similar provision benefiting business transactions.
There is a catch, though. Rather than the local taxes being capped at purchase so you don't pay them in the first place, now the qualifying organizations must file a form to receive a rebate of the excess tax paid.
Hmm, could it be that our lawmakers knew rebates on most such taxes would never be filed for? You sure don't see much publicity around this. But I digress!
A qualifying business purchase means a purchase of tangible personal property or a tax service for which a business may claim a business expense deduction or depreciation deduction for federal tax purposes. Further, the purchase may still be eligible even if the business purchaser is not required to file an income tax return.
This means that governmental agencies including schools and universities, and non-profit organizations including churches, qualify for the rebate.
A uniform single transaction definition is used, meaning it applies to any sale "reflected on a single invoice, receipt, or statement for which an aggregate sales or use tax amount has been reported or remitted to the state for a single local taxing jurisdiction."
Also, you only have one year from the date of the invoice to file for the rebate.
I have little doubt that tens of thousands of dollars, if not more, of these rebates are unclaimed each year. In my own firm, we recently filed a claim on about six months worth of purchases that netted us just under $1,000. That’s certainly not pocket change!
Form ET-179A is used to make the claim. It along with related instructions can be found at www.dfa.arkansas.gov.
