ORS 316.801
Addition for certain amounts withdrawn
  • penalty
  • exceptions


(1)

There shall be added to federal taxable income the amount of funds a taxpayer withdraws from a first-time home buyer savings account established under ORS 316.797 (First-time home buyer savings account), if:

(a)

Those funds were used for a purpose other than eligible costs;

(b)

In this tax year or a previous tax year, those funds were subtracted or exempted from federal taxable income under ORS 316.798 (Subtraction for contributions); and

(c)

Those funds were not deposited into another first-time home buyer savings account held by the taxpayer.

(2)

There shall be added to federal taxable income the amount of funds a taxpayer holds in a first-time home buyer savings account not expended on eligible costs by December 31 of the last year of the 10-year period described under ORS 316.798 (Subtraction for contributions) (3) if in a previous tax year those funds were subtracted or exempted from federal taxable income under ORS 316.798 (Subtraction for contributions).

(3)

The Department of Revenue shall assess a penalty against the taxpayer in the amount of five percent of the funds withdrawn from a taxpayer’s first-time home buyer savings account, if:

(a)

The withdrawal of funds occurs during the 10-year period set forth in ORS 316.798 (Subtraction for contributions) (3); and

(b)

The withdrawn funds are not used for eligible costs or deposited into another first-time home buyer savings account held by the taxpayer.

(4)

The penalty described in subsection (3) of this section does not apply to any funds withdrawn from a first-time home buyer savings account of:

(a)

A taxpayer who is deceased;

(b)

A taxpayer who has filed for protection under the United States Bankruptcy Code (11 U.S.C. 101 et seq.); or

(c)

A taxpayer whose loss of use or function of any portion of the body permanently incapacitates the taxpayer from regularly performing work at a gainful and suitable occupation. [2018 c.109 §7]

Source
Last accessed
May. 15, 2020