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HB 282

Ad valorem tax; property; change certain definitions

2025-2026 Regular Session Introduced by Shaw Blackmon and 4 co-sponsors

Bill HB 282 offers income tax deductions for tipped employees, aiming to ease their financial burden and support economic equity for vulnerable workers.

House Second Readers
0
WeVote Research Nonpartisan
Bill Summary · HB 282

Summary of Bill HB 282: Relating to Taxation

Bill Number: HB 282
Introduced On: January 16, 2025
Current Status: Referred to LAB, ECD, FIN (Referral Sheet 1)
Classification: Bill
Subject: Income Tax Deduction, Minority Caucus Package, Tipped Employees, Tips

Purpose and Intent

Bill HB 282 aims to amend existing taxation laws to provide specific income tax deductions for tipped employees. This legislation is part of a broader initiative known as the Minority Caucus Package, which seeks to address economic disparities and support vulnerable worker populations, particularly those who rely on tips as a significant portion of their income.

Key Provisions

  • Income Tax Deduction for Tipped Employees:
    The bill proposes a new income tax deduction specifically for individuals classified as tipped employees. This deduction is intended to alleviate the tax burden on these workers, who often experience fluctuating incomes based on tips received.

  • Eligibility Criteria:
    The bill outlines specific criteria that define who qualifies as a tipped employee, ensuring that the benefits of the deduction are targeted at those most in need.

  • Implementation Timeline:
    While the bill does not specify an exact implementation date, it is expected that the provisions will take effect for the tax year following its passage.

Affected Parties

  • Tipped Employees:
    The primary beneficiaries of this bill will be workers in industries where tipping is customary, such as restaurants, bars, and hospitality services. This group often faces financial instability due to the variable nature of their income.

  • Employers in the Service Industry:
    Employers may need to adjust their payroll and tax reporting practices to accommodate the new deduction for their tipped employees.

Legislative Process and Timeline

  • January 16, 2025: Bill HB 282 was introduced and is pending further legislative action.
  • January 17, 2025: The bill passed its first reading, indicating initial approval to move forward in the legislative process.
  • January 21, 2025: The bill was referred to the Labor (LAB), Economic Development (ECD), and Finance (FIN) committees for further review and discussion.

Conclusion

Bill HB 282 represents a significant effort to support tipped employees through targeted tax relief. By providing a specific income tax deduction, the bill aims to enhance the financial stability of workers who rely on tips, thereby contributing to broader economic equity initiatives. As the bill progresses through the legislative process, its implications for both employees and employers will become clearer.

Compiled from official sources — confirm details with the bill’s official record.

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