Bill > SB2

This bill amends Georgia's state income tax law to exclude all tips from state income taxation, starting January 1, 2025. The bill defines "tips" comprehensively, including cash tips received directly from customers, electronic tips (via credit card, debit card, etc.), noncash tips like tickets, and tips received through pooling or sharing arrangements. Employers will be required to report tip income to the state tax department, with specific reporting requirements: for the 2025 tax year, they must submit total annual tip amounts by January 31, 2026, and for subsequent years, they must provide monthly or quarterly tip data alongside withholding tax returns. The bill specifically excludes mandatory service charges from the definition of tips. The legislation becomes effective on July 1, 2025, and will apply to all taxable years beginning on or after January 1, 2025, potentially providing tax relief for service industry workers by exempting their tip income from state income tax.

Budget and Finance

https://www.legis.ga.gov/legislation/69275