Federal Law and Regulations Render Compliance With State Unclaimed Property Laws More Complex for Gift Card Issuers

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

New rules relating to stored-value cards under the federal Credit Card Accountability Responsibility and Disclosure Act of 2009 and subsequent Federal Reserve Board regulations, finalized in March 2010, have come into conflict with state unclaimed property laws. Further complicating the picture for gift card issuers is that some state escheat laws are also in direct conflict with the laws of other states. This article, by Michelle Andre of KPMG LLP, provides an overview of the new federal rules, explains how some states have changed their unclaimed property rules in response to the federal law, and discusses some of the related issues created for gift card issuers.

This article is available to subscribers of the Weekly State Tax Report. For more information or to take a trial to the report, click here.

Request Weekly State Tax Report