                                 CODE OF VIRGINIA

CLAIMING FIRST-TIME HOME BUYER STATUS (§ 36-172)

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, which may include the settlement statement, 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; (iii) file, with the
account holder&#8217;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 6 of &#xA7; 58.1-322.01 or (b) recaptured pursuant to subdivision 25
of &#xA7; 58.1-322.02.

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 (&#xA7; 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, § 55-556; 2017, c. 444; 2019, c. 712.