SENATE 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

Senate Hearing Date(s):February 4, 1988

Majority Report:  Do pass.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Anderson, Hansen, McMullen, Smitherman, von Reichbauer.

Senate Staff:Jean Six (786-7423)

                  February 12, 1988

AS PASSED SENATE, FEBRUARY 11, 1988

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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one