Bill > SF587

This bill provides a tax subtraction for gratuities (tips) paid to employees in Minnesota, effectively allowing taxpayers to reduce their taxable income by the amount of tips they have paid. By referencing section 177.23, subdivision 9 of Minnesota statutes for the definition of gratuities, the bill ensures that the term is consistently defined across state regulations. Specifically, the bill amends the state income tax code to create a new subdivision that allows individuals to subtract the total amount of gratuities they have paid from their taxable income. This change would take effect for tax years beginning after December 31, 2024, meaning taxpayers would first be able to claim this subtraction on their 2025 tax returns. The purpose of this bill appears to be providing some financial relief to taxpayers by reducing their taxable income when they pay tips to service workers, potentially acknowledging the importance of gratuities in supporting workers in service industries.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0587&ssn=0&y=2025