MS SB2837

Authorizes Mississippi taxpayers to establish first-time home buyer savings accounts with financial institutions and excludes contributions, interest earned, and qualified distributions from state gross income.

Limits account contributions to a maximum of $50,000 in principal and total account balance (principal plus earnings) to $150,000, with only cash and marketable securities allowed as contributions.

Defines eligible costs as down payments and allowable closing costs for purchase of a single-family residence in Mississippi by a qualified beneficiary who has never previously owned a home.

Imposes a 5% penalty on non-qualified withdrawals (with exceptions for death, disability, bankruptcy, or transfers to another first-time home buyer account), requiring account holders to maintain documentation and file annual forms with tax returns.

Amends Section 27-7-15, Mississippi Code of 1972 to add first-time home buyer savings accounts to the list of income exclusions; effective January 1, 2016.