MS HB1607

Authorizes Mississippi taxpayers to establish first-time home buyer savings accounts at financial institutions starting in taxable year 2017 to save for down payments and closing costs on a single-family residence in the state

Excludes from state gross income: contributions to the account (up to $50,000 principal maximum), interest and other income earned on the account, and withdrawals used for eligible home purchase costs by qualified beneficiaries

Limits total account balance including interest to $150,000; qualified beneficiaries must be Mississippi residents who have never owned a home and are designated by the account holder

Imposes a 5% penalty on previously exempted income if funds are withdrawn for purposes other than eligible home purchase costs, with exceptions for death, disability, bankruptcy, or transfer to another qualified beneficiary's account

Places no administrative or reporting obligations on financial institutions; account holders are responsible for maintaining documentation and filing required forms with the Department of Revenue