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