Bill > H3435

This bill proposes to amend South Carolina's tax code by adding a provision that excludes gratuities and tips from gross income for state tax purposes. Specifically, the bill adds a new section to Section 12-6-1120 that explicitly states that compensation received as gratuities or tips will not be considered part of an individual's taxable gross income in South Carolina. This means that workers who receive tips, such as restaurant servers, bartenders, taxi drivers, and other service industry professionals, would not have to pay state income tax on those earnings. The bill would take effect upon the Governor's approval and would apply to tax years beginning after 2024, providing a tax benefit to workers who rely on tips as a significant part of their income. By exempting these earnings from gross income, the bill aims to provide financial relief to service workers and acknowledge the importance of tip-based compensation in various industries.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=3435&session=126&summary=B