MI SB0511

Establishes the Michigan First-Time Home Buyer Savings Program allowing individuals to open designated savings accounts with financial institutions beginning January 1, 2019 through December 31, 2025 to save for down payments and closing costs on a single-family residence in Michigan.

Defines a first-time home buyer as a Michigan resident who has not owned or purchased a single-family residence during the 3 years prior to purchase, and allows account holders to designate one qualified beneficiary at a time, with the option to change beneficiaries.

Sets a maximum account balance limit of $50,000, with contributions and interest earnings exempt from state taxation; qualified withdrawals for eligible costs are also tax-exempt.

Imposes a 10% penalty on non-qualified withdrawals, with exceptions for death, disability, bankruptcy, or transfers to another first-time home buyer savings account.

Places program administration with the Michigan Department of Treasury and limits financial institutions' responsibilities for account designation, fund tracking, or tax reporting related to the accounts.