Bill > HB2081

This bill amends Arizona's income tax law to add a new provision allowing taxpayers to subtract compensation received as tips from their gross income, starting in the tax year beginning after December 31, 2024. The subtraction applies specifically to tips that are reported to the employer in accordance with Section 6053(a) of the United States Internal Revenue Code. This means that tips which are officially documented and reported to an employer can be excluded from a taxpayer's Arizona gross income, potentially reducing the overall taxable income for workers who receive tips, such as restaurant servers, bartenders, and other service industry employees. The provision aims to provide a tax benefit to workers who rely on tips as a significant part of their income, effectively lowering their state tax liability by reducing the amount of income subject to taxation.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81754