Between July of the previous year and November, Maryland accumulated $242 million in unclaimed funds but only managed to return $53 million, a mere 22 percent, to its rightful owners. These unclaimed properties can range from forgotten bank accounts to uncashed checks or utility deposits. Currently, over $199 million remains unclaimed, affecting approximately 1.5 million individuals listed on the state’s Unclaimed Property website. The outdated system used by the state limits its ability to accurately track these funds, raising concerns about transparency and efficiency.
Uncovering the Issues Behind Maryland's Unclaimed Property Division
In the picturesque yet challenging autumn season, as leaves turn vibrant shades of gold and crimson, Maryland finds itself grappling with an outdated system that hinders the return of unclaimed property. The State Comptroller’s office acknowledges the use of software and processes dating back three decades, which severely limit its capacity to manage and return these funds efficiently.
Despite claims of “remarkable success” in 2023, where the division collected $315 million and returned $81 million, experts like Ron Lizzi argue that this represents a failure. Only 26 percent of collected funds were returned, leaving many citizens frustrated with the bureaucratic hurdles they face when attempting to reclaim their money. Brooke Lierman, Maryland’s State Comptroller, admits that significant improvements are necessary and is advocating for legislative changes to streamline the process.
The state is partnering with Kelmar, a company trusted by 40 other states, to develop a new website. However, this solution won’t be available until next year. In contrast, states like Texas, Illinois, and Wisconsin have implemented data-matching programs that automatically return unclaimed funds, achieving higher return rates. For instance, Illinois has returned $100 million to over 400,000 people, while Wisconsin boasts a 47 percent return rate.
Under current law, Maryland cannot automatically return funds without claims, unlike neighboring states. Moreover, the state currently uses unclaimed funds as a revenue stream, contributing $100 million annually to its general fund. This practice raises ethical concerns, as it incentivizes the state to retain rather than return these funds.
In response, Comptroller Lierman is pushing for two bills that would allow automatic returns for claims under $5,000. She emphasizes increased outreach efforts and recent website upgrades, though challenges persist, such as difficulties in name searches and limited information display.
From a journalist's perspective, this situation highlights the urgent need for reform in Maryland’s unclaimed property division. The state must prioritize returning these funds to their rightful owners over using them as a financial resource. Transparency and modernization are crucial steps toward regaining public trust and ensuring that forgotten money finds its way back to those who deserve it. This case serves as a reminder that government systems should always work for the benefit of the people they serve, not as unintended revenue streams.
In a bold move, Montana legislators have introduced a bipartisan bill that aims to leverage tourism revenue to alleviate the burden of residential property taxes. The proposed legislation, known as House Bill 489, would allow counties to implement a local option sales tax of up to 4%, targeting expenditures such as restaurant meals and vacation rentals. This initiative seeks to channel tourist dollars into reducing property tax bills for primary residents and providing assistance to renters. With strong support from both urban and rural communities, this bill represents a strategic response to Montana’s evolving economy, where tourism plays an increasingly significant role.
Details of the Proposed Legislation
In the heart of the Rocky Mountains, where tourism flourishes, a new opportunity has emerged to address the pressing issue of high property taxes. The Local Option Property Tax Relief Act (LOPTRA) proposes that voters in each county decide whether to introduce a sales tax on tourist-related goods and services. If approved, 90% of the collected funds would remain within the county or consolidated city-county jurisdiction, while 9.75% would be distributed to non-participating rural areas. The remaining fraction would cover administrative costs.
The bill's architects, Representatives Greg Oblander (R-Billings) and Tom France (D-Missoula), emphasize that this measure is the culmination of extensive discussions across Montana. It reflects a balanced approach, combining state oversight with local autonomy. With an estimated $5 billion in untapped tourism revenue annually, the bill seeks to ensure that tourists contribute to the infrastructure and services they utilize during their visits.
County Commissioners from Cascade, Roosevelt, and Missoula counties voiced their support at a recent press conference. They highlighted how smaller communities along the Hi-Line, which see substantial tourist traffic en route to Glacier National Park, stand to benefit significantly. For instance, a 4% tax in Cascade County could reduce property taxes by 63% for a home valued at $500,000, translating to a tangible financial relief for residents.
To safeguard against potential drawbacks, the bill includes provisions to protect lower-income residents by exempting SNAP grocery items from taxation. Additionally, it mandates that any proposal must go before voters during a general election with at least 40% turnout. Polling data from winter 2022 indicates strong public support, with 70% backing the initiative after learning more about its details.
Reflections on the Proposal
This innovative approach to property tax relief offers a promising solution to a long-standing issue in Montana. By tapping into the robust tourism sector, the bill not only addresses the immediate need for financial relief but also promotes fairness by ensuring that those who benefit from local services contribute to their upkeep. The bipartisan nature of the bill underscores a shared commitment to finding practical solutions that work for all Montanans, regardless of their political leanings.
Ultimately, House Bill 489 represents a thoughtful and inclusive strategy to enhance local governance while addressing economic challenges. As lawmakers consider this legislation alongside other proposals, it becomes clear that comprehensive tax reform requires a multifaceted approach. This bill stands out as a vital component in achieving meaningful relief for Montana’s residents, fostering a sustainable future for both urban and rural communities alike.
In an engaging session on Good Morning Northland, financial expert Barry Bigelow provided insightful advice on investing for young adults. This week's episode was part of a four-part series aimed at helping young individuals navigate the complexities of personal finance. Bigelow emphasized the importance of cultivating good financial habits early on and offered practical tips on starting small, managing debt, and understanding the impact of friendships on finances.
Expert Insights on Building a Solid Financial Foundation
In a vibrant autumn morning, financial advisor Barry Bigelow joined the Good Morning Northland team to discuss essential financial strategies for young people. The discussion revolved around creating sustainable financial habits from the outset of one's career. Bigelow highlighted that even modest contributions, such as setting aside a few dollars from each paycheck, can significantly impact long-term financial health.
He recommended utilizing post-tax accounts like Roth IRAs and ensuring accurate completion of W-4 forms to prevent unexpected tax issues. In today’s economy, where inflation remains a concern, Bigelow advised that changing jobs might be necessary to achieve better wages. He reassured listeners that their first job is unlikely to be their last and that transitioning between roles can lead to higher earnings.
Addressing debt management, Bigelow suggested making early arrangements for student loan payments and communicating with creditors to maintain a healthy credit score. For those facing financial challenges, he recommended discussing concerns openly with creditors and considering partial payments when needed.
Interestingly, Bigelow also touched upon the influence of friendships on personal finances. He emphasized the importance of having honest conversations about financial boundaries with friends, noting that true friendships respect and understand these limits.
For those seeking further guidance, Barry encouraged reaching out through social media platforms for personalized advice.
From a reader's perspective, this segment offers invaluable lessons on building a robust financial foundation. It underscores the significance of proactive financial planning and the benefits of developing sound habits early in life. By following these principles, young adults can gain greater control over their financial futures and make informed decisions that lead to long-term stability and success.