Unclaimed Property

Manage exemptions

Learn about standard exemptions and how to apply them to your business.

About exemptions

What are standard exemptions?

Standard exemptions are state-defined rules that allow businesses to exclude qualifying properties from reports. Applying exemptions helps you focus your reporting efforts on properties that are actually reportable and prevents over-reporting.

Each state defines its own exemption criteria, which typically include:

Property code
The type of unclaimed property, such as gift certificates (MS12) or payroll (MS01).
Owner type
Whether the property belongs to a business or individual.
Threshold amount
Minimum or maximum dollar amounts set by the states.

Alternate property codes for gift certificates

Some exemptions apply only to specific types of gift certificates. For example, a state might exempt gift certificates with no expiration date or exempt all gift certificates except stored value cards.

To apply these exemptions, use alternate property codes when you add gift certificate properties. All gift certificates are reported under MS12, but alternate codes let you distinguish subtypes so that state-specific exemption rules apply correctly.

Available alternate codes:
MS12GC
Gift certificates (general) - equivalent to MS12
MS12SV
Stored value cards
MS12RL
Reloadable cards
MS12NE
Gift certificates with no expiration date
MS12PP
Pre-paid cards

To see which alternate codes apply to specific exemptions, check the Property Codes column on the Business > Exemptions page.

Exemptions workflow

Follow this workflow to use standard exemptions effectively.
  1. Review and verify exemption requirements.
    1. Go to Business > Exemptions.
      • ReportMyUP Plus only: Click an exemption's row to review its details, including the owner type.

        The Exemption details page is shown.
      • ReportMyUP and ReportMyUP Plus: Click Download exemptions as .xlsx to review all the standard exemptions and their requirements.

        The Download exemptions are .xlsx button is highlighted.
    2. Check which exemptions your business qualifies for in each state for each criterion: property codes, owner types, and threshold amounts.
    Note:

    Sovos can't advise which standard exemptions apply to your specific reporting situation. If you're uncertain whether a property qualifies for an exemption, consult with your compliance team or legal advisor.

  2. Apply exemptions.
    • ReportMyUP Plus: Activate exemptions before generating state reports. Properties that meet the criteria are automatically excluded from future state reports, and their statuses change to Exempt (E).
    • ReportMyUP: Manually change property statuses to Exempt (E) after creating due diligence letters but before generating state reports.
  3. Document your process.
    Keep records of which exemptions you applied and why.

Activate exemptions (ReportMyUP Plus)

Note:

These steps are for ReportMyUP Plus customers only. ReportMyUP customers must manually mark properties as exempt. Read about how to upgrade to ReportMyUP Plus.

  • Only Admin users can activate and deactivate exemptions.

  1. Switch to the business you want to work in.
  2. Go to Business > Exemptions.
  3. Click the exemption's row to review its details.
  4. Click Activate.
    The Activate button is highlighted.
    Tip:

    To activate multiple examples at once, select the checkboxes next to the exemptions and click the Activate icon. Then click Activate on the pop-up.The checkboxes next to the states and the Activate icon are highlighted.

Properties that meet the exemption criteria are excluded from future state reports.

When you generate report previews, exempt properties appear on an excluded records report. Property statuses automatically change to Exempt (E) after reporting.

Deactivate exemptions (ReportMyUP Plus)

Follow the steps in the section on activating exemptions but click Deactivate instead of Activate.

Properties will no longer be automatically excluded based on the exemption's criteria.

Mark properties as exempt (ReportMyUP)

Note:

These steps are for ReportMyUP customers only. ReportMyUP Plus customers must activate exemptions.

Follow these steps to mark multiple properties as exempt. To mark individual properties as exempt, change the property's status to Exempt (E).

Important:

You should mark properties as exempt after completing due diligence but before generating reports. This lets you attempt to reunite owners with their property first.

  1. Download the properties from the Properties page.
    1. Click Properties on the menu.
    2. Edit the properties table using the tabs and the quick and advanced filters to view only properties you want to download.
    3. Click Download properties as .xlsx.
      The Download properties as .xlsx button is highlighted.
  2. Open the Excel file. In the Status Code column, enter E for properties you want to exempt, then save the file.
  3. Import the file.
    1. Click Properties on the menu.
    2. Click Add properties, then select Bulk Import from the dropdown.
      The Add properties dropdown and the Bulk import button are highlighted.
    3. Verify that your business's state/province/territory of incorporation and business category are correct. Click Next.
      If the information is not correct, click Edit business information and make changes to the incorrect fields.
    4. Click Browse, select the file on your computer, then click Upload.
The properties' statuses will be updated to Exempt (E) and they will be excluded from future state reports.