h_tra_2016a_2016-05-05t10:54:07z3 Hearing Summary

Date: 05/05/2016

12:37 PM -- HB 16-1467



Representatives Duran and Salazar, co-prime sponsors, came to the table to present House Bill 16-1467. The bill allows for the creation of first-time home buyer savings accounts, and starting tax year 2017, allows an income tax deduction for account holders equal to the interest and other income earnings on account contributions. The savings account holder must designate a qualifying beneficiary of the account who must have never owned a single-family, owner-occupied residence (including a condo, manufactured home or mobile home), or must have been off of the title for such a residence for at least three years due to the dissolution of marriage. The beneficiary may be changed at any time and the account holder may designate himself or herself as the beneficiary.



Allowable contributions to a savings account are limited to $14,000 per year for individuals and $28,000 for joint filers per year. The maximum principal in the account is limited to $50,000 and maximum amount in an account is limited to $150,000. If these limits are exceeded, no deduction may be claimed. Money in an account used for purposes aside from the down payment or closing costs on a Colorado home is subject to recapture and a penalty of 5 percent of the amount recaptured within ten years of first deposit in the account, or a 10 percent thereafter. The penalty does not apply if funds are used to purchase a home in another state, or if the beneficiary dies and the account holder does not designate a new beneficiary within the same tax year.



12:40 PM -- David Barber and Ted Leighty, representing the Colorado Association of Realtors, testified in support of the bill.

12:46 PM -- Sara Reynolds, representing Housing Colorado, testified in support of the bill.

12:47 PM -- Jenifer Waller, representing the Colorado Bankers Association, testified in support of the bill.



12:48 PM



Representatives Duran and Salazar made their closing comments on the bill.



12:54 PM



The committee took a recess.



01:10 PM



The committee returned to order.