The tax-free provisions of college savings plans and other state programs could be significantly curtailed if the Supreme Court decides to review a Kentucky court ruling that found it unconstitutional for Kentucky to tax municipal bonds issued in other states, while not taxing those issued in-state, a lawyer stated this week.

Speaking at a federal outlook session during the National Association of State Treasurers’ annual legislative conference, Richard Sigal, a partner at Hawkins, Delafield & Wood, said college savings plans, state programs to exempt students’ tuition fees from state taxes, and even city and state programs that hire in-state contractors could all be affected by a high court review of the ruling in Kentucky v. Davis.

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