HCS SB 863 -- HIGHER EDUCATION SAVINGS PROGRAMS

SPONSOR:  Rupp (Muschany)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Student Achievement by a vote of 6 to 0.

Currently, the annual limit on contributions to the Missouri
Higher Education Savings Program is $8,000 per taxpayer.  This
substitute clarifies that a married couple filing jointly may
contribute up to $16,000.

Missouri residents will be allowed to make contributions to any
qualified higher education tuition savings program and receive
the same tax benefits as contributions to the state program.  The
savings from these contributions will not be considered as income
when determining state student aid eligibility.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the law needs to be clarified
for joint tax returns so that the burden of paperwork is reduced.
If state residents are allowed to invest in other college savings
"529" plans, competition should improve service.

Testifying for the bill were Representative Muschany for Senator
Rupp; Jim Kueny; and Kim Chamberlain, Securities Industry and
Financial Markets Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm