Delaware HB 285

This bill amends the escheat statutes to provide an appeals process and a statute of limitations on escheat actions. It adds an administrative appeal process to start with the Tax Appeals Board and then to the Chancery Court, if necessary. The bill makes it clear that an exhaustion of remedies is not required prior to taking an issue to court.

In addition, the bill adds a statute of limitation of 3 years from the date a report is filed (so long as the report is not fraudulent or "false"). The three-year statute of limitations starts to run when a holder of abandoned property has filed a report with the State Escheator or notified the State Escheator of a dispute regarding the property.  The statute of limitations mirrors the State tax code, which provides a statute of limitations of three years, which starts to run when a tax return is filed.  If no report is filed or a fraudulent report is filed, then there is no statute of limitations

This bill was introduced by Representative John Viola and is strongly supported by the  Council On State Taxation (COST). A copy of the Bill is attached for your review.