| 1 | 1 | | FIRSTREGULARSESSION |
|---|
| 2 | 2 | | HOUSEBILLNO.1272 |
|---|
| 3 | 3 | | 103RDGENERALASSEMBLY |
|---|
| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEOWEN. |
|---|
| 5 | 5 | | 2502H.02I JOSEPHENGLER,ChiefClerk |
|---|
| 6 | 6 | | ANACT |
|---|
| 7 | 7 | | Torepealsection166.435,RSMo,andtoenactinlieuthereofonenewsectionrelatingto |
|---|
| 8 | 8 | | contributionstoqualifiedtuitionprograms. |
|---|
| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
|---|
| 10 | 10 | | SectionA.Section166.435,RSMo,isrepealedandonenewsectionenactedinlieu |
|---|
| 11 | 11 | | 2thereof,tobeknownassection166.435,toreadasfollows: |
|---|
| 12 | 12 | | 166.435.1.Notwithstandinganylawtothecontrary,theassetsoftheprogramheld |
|---|
| 13 | 13 | | 2bytheboard,theassetsofanydepositprogramauthorizedinsection166.500,andtheassets |
|---|
| 14 | 14 | | 3ofanyqualifiedtuitionprogramestablishedpursuanttoSection529oftheInternalRevenue |
|---|
| 15 | 15 | | 4Codeandanyincometherefromshallbeexemptfromalltaxationbythestateoranyofits |
|---|
| 16 | 16 | | 5politicalsubdivisions.Incomeearnedorreceivedfromtheprogram,deposit,orother |
|---|
| 17 | 17 | | 6qualifiedtuitionprogramsestablishedunderSection529oftheInternalRevenueCode,or |
|---|
| 18 | 18 | | 7refundsofqualifiededucationexpensesreceivedbyabeneficiaryfromaneligible |
|---|
| 19 | 19 | | 8educationalinstitutioninconnectionwithwithdrawalfromenrollmentatsuchinstitution |
|---|
| 20 | 20 | | 9whicharecontributedwithinsixtydaysofwithdrawaltoaqualifiedtuitionprogramofwhich |
|---|
| 21 | 21 | | 10suchindividualisabeneficiaryshallnotbesubjecttostateincometaximposedpursuantto |
|---|
| 22 | 22 | | 11chapter143andshallbeeligibleforanybenefitsprovidedinaccordancewithSection529of |
|---|
| 23 | 23 | | 12theInternalRevenueCode.Theexemptionfromtaxationpursuanttothissectionshallapply |
|---|
| 24 | 24 | | 13onlytoassetsandincomemaintained,accrued,orexpendedpursuanttotherequirementsof |
|---|
| 25 | 25 | | 14theprogramestablishedpursuanttosections166.400to166.455,thedepositprogram |
|---|
| 26 | 26 | | 15establishedpursuanttosections166.500to166.529,andotherqualifiedtuitionprograms |
|---|
| 27 | 27 | | 16establishedunderSection529oftheInternalRevenueCode,andnoexemptionshallapplyto |
|---|
| 28 | 28 | | 17assetsandincomeexpendedforanyotherpurposes.Annualcontributionsmadeonlytothe |
|---|
| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
|---|
| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18[programheldbytheboard,the]depositprogram[, andanyqualifiedtuition] ortheMissouri |
|---|
| 31 | 31 | | 19educationprogramestablishedunder[Section529oftheInternalRevenueCode] sections |
|---|
| 32 | 32 | | 20166.400to166.455,orboth,uptoandincludingeightthousanddollarspertaxpayer,andup |
|---|
| 33 | 33 | | 21tosixteenthousanddollarsformarriedindividualsfilingajointtaxreturn,shallbesubtracted |
|---|
| 34 | 34 | | 22indeterminingMissouriadjustedgrossincomepursuanttosection143.121. |
|---|
| 35 | 35 | | 23 2.Ifanydeductiblecontributionstoorearningsfromanysuchprogramreferredtoin |
|---|
| 36 | 36 | | 24thissectionaredistributedandnotusedtopayqualifiededucationexpenses,nottransferred |
|---|
| 37 | 37 | | 25asallowedby26U.S.C.Section529(c)(3)(C)(i),asamended,andanyInternalRevenue |
|---|
| 38 | 38 | | 26Serviceregulationsorguidanceissuedinrelationthereto,orarenotheldfortheminimum |
|---|
| 39 | 39 | | 27lengthoftimeestablishedbytheappropriateMissouriboard,thentheamountsodistributed |
|---|
| 40 | 40 | | 28shallbeincludedintheMissouriadjustedgrossincomeoftheparticipant,or,iftheparticipant |
|---|
| 41 | 41 | | 29isnotliving,thebeneficiary. |
|---|
| 42 | 42 | | 30 3.TheprovisionsofthissectionshallapplytotaxyearsbeginningonorafterJanuary |
|---|
| 43 | 43 | | 311,2008,andtheprovisionsofthissectionwithregardtosections166.500to166.529shall |
|---|
| 44 | 44 | | 32applytotaxyearsbeginningonorafterJanuary1,2004. |
|---|
| 45 | 45 | | âś” |
|---|
| 46 | 46 | | HB1272 2 |
|---|