Bill > HB1324

This bill creates a new income tax deduction for employees working in food or beverage service establishments in North Dakota. Specifically, workers can reduce their state taxable income by the total amount of cash and noncash tips they receive during their work, but only to the extent those tips are already included in their federal taxable income. The bill defines a "food or beverage service establishment" as a business primarily focused on selling prepared food or drinks for on-site consumption, which would typically include restaurants, cafes, bars, and similar dining venues. The tax deduction will become effective for tax years beginning after December 31, 2024, meaning it will first apply to the 2025 tax year. By allowing this deduction, the bill aims to provide some tax relief for service industry workers who rely on tips as a significant part of their income, potentially helping to reduce their overall tax burden at the state level.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1324.html