CODE OF VIRGINIA

CLAIMING FIRST-TIME HOME BUYER STATUS (§ 55-556)

A. The account holder shall be responsible for the use or application of moneys
or funds in an account for which the account holder claims first-time home buyer
savings account status.

B. The account holder shall (i) not use moneys or funds held in an account to
pay expenses of administering the account, except that a service fee may be
deducted from the account by a financial institution; (ii) maintain
documentation of the segregation of moneys or funds in separate accounts and
documentation of eligible costs for the purchase of a single-family residence in
the Commonwealth; such documentation may include the settlement statement; (iii)
file, with the account holder’s Virginia income tax return, forms
developed by the Department of Taxation regarding treatment of the account as a
first-time home buyer savings account under this chapter, along with the Form
1099 issued by the financial institution for such account; and (iv) remit to the
Department of Taxation the tax on any amounts (a) added to individual income
pursuant to subdivision B 10 of § 58.1-322 or (b) recaptured pursuant to
subdivision C 36 of § 58.1-322.

C. The Tax Commissioner shall develop guidelines applicable to account holders
to implement the provisions of this chapter. Such guidelines shall be exempt
from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
Such guidelines shall not apply to, or impose administrative, reporting, or
other obligations or requirements on, financial institutions-related accounts
for which first-time home buyer savings account status is claimed by the account
holder.

HISTORY: 2014, c. 729.