CHAPTER 64
SB 138-FN - FINAL VERSION
2003 SESSION
04/09
SENATE BILL 138-FN
AN ACT clarifying the exemption from the interest and dividends tax for distributions from qualified tuition savings programs.
SPONSORS: Sen. Larsen, Dist 15; Sen. Peterson, Dist 11; Sen. Below, Dist 5
This bill clarifies the exemption from the interest and dividends tax for income and distributions from qualified tuition programs.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-1095
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT clarifying the exemption from the interest and dividends tax for distributions from qualified tuition savings programs.
Be it Enacted by the Senate and House of Representatives in General Court convened:
64:1 Taxation of Incomes; Interest and Dividends from Funds Invested in College Tuition Savings Plans. Amend RSA 77:4-e to read as follows:
77:4-e Interest and Dividends From Funds Invested in College Tuition Savings Plan Not Taxable. Notwithstanding any provision of RSA 77:4, [interest and dividend income received from funds invested in the college tuition savings plan under RSA 195-H shall at no time be considered taxable income under RSA 77:4, either to the plan or to its sponsors, participants, or beneficiaries, if used in accordance with RSA 195-H] income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended, shall not be taxable under this chapter to the plan or to its sponsors, participants, or beneficiaries to the extent that the same is exempt from federal income taxation under section 529 of the Internal Revenue Code of 1986, as amended, as that section was in effect on July 1, 2003.
64:2 Funds Exempt from Interest and Dividends Tax. Amend RSA 195-H:10 to read as follows: 195-H:10 Funds Exempt From Interest and Dividends Tax. [Except as otherwise indicated in this chapter, interest and dividend from funds invested in the savings plan] Income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended shall be exempt from the New Hampshire interest and dividends tax pursuant to RSA 77:4-e.
64:3 Effective Date. This act shall take effect July 1, 2003.
(Approved: May 27,2003)
(Effective Date: July 1, 2003)