Taxing College Savings Plans
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Lawmakers give final approval to legislation lowering taxes on college savings plans.
Investors in the Missouri Higher Education Savings Program already don't pay taxes on earnings. The bill expands the tax exemption to any 529 college savings plan including those in other states.
Bill supporters say states don't make money by administering the college savings funds, and so it doesn't matter in what state parents invest. Sponsoring Sen. Scott Rupp, a Republican from Wentzville, says expanding the tax exemption would create more options and encourage more people to save for college.
But Sen. Joan Bray, a St. Louis Democrat, says it's not a good idea to create a tax incentive for investing in another state's plan.
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