SB339,4 2Section 4 . 71.10 (10) of the statutes is created to read:
SB339,3,43 71.10 (10) First-time home buyers savings accounts. (a) Definitions. In this
SB339,3,65 1. “Account holder” means an individual who creates, individually or jointly
6with his or her spouse, an account under this subsection.
SB339,3,87 2. “Allowable closing costs” means disbursements listed in a settlement
8statement for the purchase of a single-family residence by an account holder.
SB339,3,109 3. “Beneficiary" means a first-time home buyer who is designated by an
10account holder as the beneficiary of an account under this subsection.
SB339,3,1211 4. “Eligible costs” means the down payment and allowable closing costs for the
12purchase of a single-family residence in this state by a beneficiary.
SB339,3,1713 5. “Financial institution" means any bank, trust company, savings institution,
14savings bank, savings and loan association, industrial loan association, consumer
15finance company, credit union, or any benefit association, insurance company, safe
16deposit company, money market mutual fund, or similar entity authorized to do
17business in this state.
SB339,3,2118 6. “First-time home buyer” means an individual who resides in this state and
19has not owned or purchased, either individually or jointly, a single-family residence
20during the 36 months before the month in which the individual purchases a
21single-family residence in this state.
SB339,3,2522 7. “Single-family residence” means a residence intended for occupation by a
23single family unit that is owned and occupied by a beneficiary as his or her principal
24residence, including a manufactured home, residential trailer, mobile home,
25condominium unit, or cooperative.
1(b) Creation of account. 1. An individual may become an account holder by
2creating an account at a financial institution to pay or reimburse the eligible costs
3of a first-time home buyer.
SB339,4,74 2. The account holder shall designate a beneficiary when the account is created.
5The account holder may designate himself or herself as the beneficiary. An account
6holder may change the beneficiary at any time. No account created under this
7subsection may have more than one beneficiary at any one time.
SB339,4,98 3. An individual may jointly own an account created under this subsection with
9his or her spouse.
SB339,4,1210 4. An individual may be the account holder of more than one account created
11under this subsection, but an account holder may not have more than one account
12that designates the same beneficiary.
SB339,4,1413 5. An individual may be the beneficiary of more than one account created under
14this subsection.
SB339,4,1615 6. Only cash and marketable securities may be contributed to an account under
16this subsection.
SB339,4,1917 7. Persons other than an account holder may contribute to an account created
18under this subsection, but the subtraction under s. 71.05 (6) (b) 54. may be claimed
19only by an account holder.
SB339,4,2320 (c) Account holder rights and responsibilities. 1. An account holder may
21withdraw funds from an account created under this subsection to pay eligible costs
22for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the
23beneficiary incurs and has paid.
12. An account holder may not use funds in an account created under this
2subsection to pay any expenses he or she incurs in administering the account,
3although a financial institution may deduct a service fee from the account.
SB339,5,74 3. Annually, an account holder shall submit to the department of revenue with
5his or her income tax return, on forms prepared by the department, detailed
6information regarding the account. The information submitted shall include all of
7the following:
SB339,5,108 a. A list of transactions in the account during the taxable year to which the
9account holder's return relates, including the beginning and ending balance of the
SB339,5,1111 b. The 1099 form issued by the financial institution that relates to the account.
SB339,5,1312 c. A list of eligible costs, and other costs, for which funds from the account were
13withdrawn during the taxable year to which the account holder's return relates.
SB339,5,1814 4. An account holder may withdraw funds from the account with no penalty due
15under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6)
16(a) 29., if he or she immediately transfers the funds to a different financial institution
17and deposits the funds into an account created under this subsection at that financial
SB339,5,2119 (d) Limitations on accounts, dissolution. 1. An account holder may not claim
20a subtraction under s. 71.05 (6) (b) 54. for more than a total of $50,000 of deposits into
21an account for each beneficiary.
SB339,5,2322 2. An account holder shall dissolve an account created under this subsection
23not later than 120 months after it is created by the account holder.
13. If funds remain in an account when it must be dissolved under subd. 2., the
2financial institution shall distribute the proceeds in the account to the account
SB339,6,54 4. If an account holder dies while funds remain in the account, the proceeds
5shall be distributed to the account holder's estate.
SB339,6,66 (e) Department responsibilities. The department shall:
SB339,6,107 1. Prepare and distribute any forms that an account holder is required to
8submit under this subsection, and any other forms that the department believes are
9necessary to enable it to administer this subsection and the adjustments to income
10under s. 71.05 (6) (a) 29. and (b) 54.
SB339,6,1211 2. Prepare and distribute to financial institutions and potential home buyers
12informational materials about the accounts described in this subsection.
SB339,5 13Section 5 . 71.83 (1) (ch) of the statutes is created to read:
SB339,6,2014 71.83 (1) (ch) First-time home buyers savings account withdrawals. If an
15account holder, as defined under s. 71.10 (10) (a) 1., or an account holder's estate is
16required to add any amount to federal adjusted gross income under s. 71.05 (6) (a)
1729., the account holder or the account holder's estate shall also pay an amount equal
18to 10 percent of the amount that was added to income under s. 71.05 (6) (a) 29. The
19department of revenue shall assess, levy, and collect the penalty under this
20paragraph as it assesses, levies, and collects taxes under this chapter.
SB339,6 21Section 6. Initial applicability.
SB339,6,2222 (1) This act first applies to taxable years beginning on January 1, 2020.
SB339,6,2323 (End)