The Supreme Court said it will hear a case in its next term this fall that could drastically impact both the municipal bond market and 529 college savings plans, law.com reports. At issue is whether states can exempt municipal bonds issued in their own state from taxes yet levy taxes on municipal bonds issued by other states.

A Kentucky court ruled last year that taxing municipal bonds issued by other states is in violation of the anti-discriminatory provisions for out-of-state commerce outlined in the Constitution.

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