Does South Dakota owe you money?
The State Treasurer is holding millions of dollars in unclaimed funds for South Dakotans. The State holds these lost funds until claimed by either the original owner or their heirs. They can be claimed at no cost with the proper identification. It takes just 30 seconds to find out if you have any unclaimed property and it’s FREE.
Unclaimed Property – South Dakota State Treasurer
From the article: Haeder: Unclaimed property is ‘Russian roulette’
Republican Sen. John Carley asked Haeder whether he has any opinions about what should be done. Haeder said “above all else” he wants to return the money but for seven years he has advocated for a trust fund.
“Right now we’re playing Russian roulette with these dollars,” Haeder said.
The treasurer’s budget request calls for $800,000 to establish a data-matching system similar to what’s used in 17 other states. It would help South Dakota reunite $19 million of 208,000 properties that were $2,500 or less and received from 2013 to 2024.
Haeder said South Dakota state government can’t afford to return people’s money. “What are we going to do if a court order compels the state to return funds?” he said. Other states have been successfully sued. “This is a very real possibility,” he said.
Deputy treasurer Jason Williams said 28 states pay interest, including 25 under court orders. “What kind of interest varies,” he said. South Dakota so far hasn’t been sued. “It’s not a simple process, but it’s something 28 other states have been dealing with,” Williams said.
Back in 2019, Republican Sen. Taffy Howard proposed a statewide vote on establishing an unclaimed property trust fund that could take up to $40 million per year. The House passed the resolution, but the Senate Appropriations Committee killed it.
Republican Gov. Kristi Noem was in her first year of office that year. She opposed Howard’s trust-fund concept and sent a top staff member from her budget office to testify against it.
Now Noem is changing her approach to unclaimed property. In her December 4, 2024, budget speech, she recommended shifting some of it into state government’s budget reserve.
“For one-time revenue, we have $175 million available, primarily as a result of another large infusion of unclaimed property receipts,” Noem said that afternoon. “Last year, you heard me talk about historic unclaimed property receipts of $134 million. Due to our excellent business climate, we attracted yet another large holder of unclaimed property. This year, unclaimed property funds exceeded that.
The Joint Committee on Appropriations of South Dakota convened on January 15, 2025, to discuss various budgetary matters, including a significant focus on unclaimed property. The meeting began with a request for a one-time allocation of $50,000, which was not included in the governor’s budget proposal.
The discussion transitioned to the unclaimed property division, where it was revealed that the state treasurer currently holds over $1.2 billion in unclaimed funds. These funds remain available for claim indefinitely, a policy established by state statute. The committee clarified that the term “receipts” is used to describe these funds, as they are owed to individuals rather than being classified as revenue generated from taxes.
Budget estimates presented included $581,000 for employee salaries and benefits, $2.9 million for operating expenses, and $40,000 for supplies. Additionally, the treasurer’s office anticipates approximately $35 million in claims payments to rightful owners, a figure based on previous years’ data and current trends.
Questions arose regarding the perpetuity of unclaimed funds, with representatives inquiring about the legal basis for this policy and how it compares to practices in other states. The treasurer’s office confirmed that while some states have modified their laws, South Dakota maintains a policy of indefinite claims.
The committee also discussed the potential risks associated with unclaimed property, particularly the possibility of financial institutions withdrawing from the state, which could drastically reduce future receipts. It was noted that while the state does not generate interest on these funds, they are required to return any claims made by individuals.
Further inquiries addressed the nature of unclaimed property, which includes not only cash but also items from safety deposit boxes. The treasurer’s office confirmed that nearly all unclaimed property is converted to cash, with a small percentage consisting of physical items.
The meeting concluded with a discussion on the potential establishment of a trust fund for unclaimed property, which could provide a more stable financial framework for managing these funds. The treasurer expressed support for this initiative, emphasizing the need for a responsible approach to handling unclaimed property to avoid financial vulnerabilities for the state.
Overall, the meeting highlighted the complexities surrounding unclaimed property management in South Dakota, the financial implications for the state, and the ongoing efforts to ensure rightful owners can reclaim their funds. The committee plans to continue discussions on these topics in future sessions.
