Bill > A5006

Introduced Session

This bill excludes income earned in the form of tips from the gross income tax. Under current law, the State defines gross income as, among other categories of income, salaries, wages, tips, fees, commissions, bonuses, and other remuneration received for services rendered. Subject to minimum gross income thresholds identified under the law and specific deductions for which a tax filer is deemed eligible, all income from tips is treated as taxable income. However, under current law, the value of property an individual acquires by gift, bequest, devise or inheritance is specifically excluded from gross income, except for the income received from property acquired by gift, bequest, devise or inheritance that has an income-generating capacity. Specifically, the bill eliminates tips as a category of income that is included in the calculation of gross income for State income tax purposes. The bill also specifies that tips received for services rendered, whether in cash or in property, would be treated as property acquired by gift, and therefore specifically excluded from the calculation of gross income.

AI Summary

Committee Categories

Don Guardian (R)*,  Al Barlas (R),  Greg McGuckin (R),  Claire Swift (R), 

Introduced, Referred to Assembly Labor Committee (on 10/28/2024)

Official Document