Bill > SB285

This bill proposes to create a tax exemption for tips received by workers in New Mexico, allowing residents to exclude the total amount of tips from their taxable income. Specifically, the bill adds a new section to the state's Income Tax Act that permits individuals to claim an exemption for tips earned either as direct compensation for services or as part of their wages. The exemption would apply to all taxable years starting on or after January 1, 2025, meaning that workers in the state would not have to pay income tax on tips they receive. This could potentially benefit service industry workers such as restaurant servers, bartenders, taxi drivers, and others who regularly receive tips as a significant portion of their earnings. By removing tips from taxable income, the bill aims to provide financial relief to workers in professions where gratuities are a common form of compensation.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=285&year=25