The property of the trust and its income from operations shall be exempt from all taxation by the Commonwealth of Kentucky or any of its political subdivisions. Investment income earned on contributions paid by any participant and used for qualified educational expenses defined in KRS § 164A.305(13) or refunded under KRS § 164A.350 shall not be subject to Kentucky income tax by either a participant or any beneficiary of a participation agreement, the purposes for which the investment income was accrued being deemed and declared to be entirely public in nature. Earnings that are not used for qualified educational expenses as defined in KRS § 164A.305(13) and are refunded shall be subject to Kentucky income tax, except for earnings refunded pursuant to KRS § 164A.350.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 137, sec. 6, effective July 14, 2018. — Amended
2003 Ky. Acts ch. 150, sec. 2, effective June 24, 2003; and ch. 180, sec. 6, effective June 24, 2003. — Amended 2000 Ky. Acts ch. 382, sec. 9, effective July 14, 2000. — Created 1988 Ky. Acts ch. 88, sec. 15, effective July 15, 1988.