Bill
HF 164
Overview: HF 164, "Tip income exempted from the individual income tax and tax withholding requirements", was introduced on January 30, 2025, with Representative Schultz added as an
Overview: HF 164, "Tip income exempted from the individual income tax and tax withholding requirements", was introduced on January 30, 2025, with Representative Schultz added as an author.
Purpose and Intent: The bill aims to exempt tip income from individual income tax and tax withholding requirements. This legislation is intended to provide tax relief for workers who rely on tips as a significant portion of their compensation, such as those in the service industry.
Key Provisions:
- Excludes tip income from the calculation of an individual's taxable income for state income tax purposes
- Exempts tip income from tax withholding requirements, allowing workers to retain a larger portion of their earnings
Affected Parties and Impacts: This bill primarily affects individuals who receive a significant portion of their income in the form of tips, such as servers, bartenders, and other service industry workers. It is expected to increase the take-home pay for these workers and reduce their tax burden.
Procedural and Timeline Considerations: The bill has been introduced and is currently in the legislative process. It has been referred to the Taxes committee for further consideration. The timeline for the bill's progression and potential enactment is uncertain at this stage.
Compiled from official sources — confirm details with the bill’s official record.
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