STATEMENT OF PURPOSE
RS27833 / H0589
The purpose of this legislation is to establish First-time Homebuyer Savings Accounts. Similar to existing
Idaho tax-advantaged savings accounts for healthcare and educational purposes, Idaho's First-time Homebuyer
Savings Accounts would encourage individuals to save for their first home, including down-payment on a home,
or other eligible home costs associated with closing on their first home in Idaho. The allowable tax deduction
for an individual account holder is $15,000 per year, while the allowable tax deduction for a married couple
is $30,000 per year. The proposed legislation mirrors existing Idaho code for reporting and depository related
matters for other tax-advantaged savings accounts in Idaho.
FISCAL NOTE
Assumptions: IHFA determined there to be about 13,200 non-repeating first-time homebuyers in Idaho in 2019.
We, (IR, DFM), expect 10 percent (1,320) of that universe to open a FTHBSA in the first year with a 60/40
split favoring married couples. Individuals are taxed on 6.02% of their income for state taxes, while married
couples are taxed at a rate of 6.19%.
Calculation: There are a total of 792 married, 528 individual FTHBSA in our applicable universe.
If the joint accounts save a total of $30,000 per year, they would be saving $1,857 in taxes, costing the state
$1,470,744 in revenue.
If the individual accounts each save a total of $15,000 per year, they would be saving $903 in taxes, costing the
state $476,784 in revenue.
Therefor, our bill has a Fiscal Note of $1,947,528.
Contact:
Representative Robert Anderst, District 12
(208) 332-1000
Max Pond , Idaho Association of REALTORS
(208) 230-6703
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 03/02/2020, 12:58 PM