FINAL BILL REPORT

SJM 8026

BYSenators Rinehart, Saling and von Reichbauer

Requesting that Congress exempt tuition waivers from federal income tax.

Senate Committee on Higher Education

House Committe on Higher Education

AS PASSED LEGISLATURE

BACKGROUND:

The United States Congress has failed to renew the federal tax provision excluding tuition waivers from income subject to federal income tax.  Tuition waivers worth about $2,200 each are awarded to students hired as teaching and research assistants at the University of Washington and Washington State University.  More than 4,000 graduate students at those institutions will be required to pay taxes on money they will never see.

SUMMARY:

The Legislature petitions the President, the Speaker of the House and President of the Senate to reconsider the issue and exclude tuition waivers from income subject to federal income tax.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 86   0