California and Illinois have both made changes to their aggregate dollar limits. Before I provide the details, I’d like to explain what the aggregate limit is for those who are unaware of this concept.
A state’s aggregate limit is expressed as a dollar amount. If a state’s aggregate limit is $50, this means you can choose not to provide name and address information for owners if the amount of the property is $49.99 or less. It is important to understand that you are still required to report the amounts under $50.
I always recommend that holders report name and address information for every record, regardless of dollar amount. If you’d like to read more about the pitfalls of aggregate reporting, please see this
blog post from our archives. It was written by Bill Dadmun from the State of Virginia. He includes some things you’ll want to consider before you report in the aggregate.
Here are the details of the law changes.
California
Assembly Bill 212 reduces the aggregate limit from $50 down to $25. This law is effective 7/1/2014. If you file your holder notice report before 7/1/2014, you may still use the $50 limit for the holder notice and the remit report. If you are confused about what is meant by ‘holder notice’ and ‘remit report’, please see this post that covers the detail of
California’s reporting cycle.
Illinois
Senate Bill 1988 reduces the aggregate limit from $25 to $5. This law has been effective since August of last year.
Author: Danielle Herring
Product Manager, UPExchange
Labels: UP Compliance
