summary
Introduced
02/12/2025
02/12/2025
In Committee
02/12/2025
02/12/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2025-2026 Regular Session
Bill Summary
This bill creates an income tax exemption for cash tips received by an employee from the customers of the employee[s employer. Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill. For further information see the state fiscal estimate, which will be printed as an appendix to this bill. LRB-0181/1 KP:amn 2025 - 2026 Legislature SENATE BILL 36
AI Summary
This bill creates an income tax exemption for cash tips received by employees directly from customers. Specifically, the bill adds a new provision to Wisconsin state tax law that excludes cash tips from taxable income. The legislation systematically removes references to "tips" from various sections of the tax code related to income calculations for residents and non-residents, effectively simplifying the tax treatment of tip income. This means that cash tips will no longer be considered part of an employee's taxable wages when calculating state income tax. The bill will first apply to taxable years beginning after December 31, 2024, giving employers and employees time to understand and prepare for the change. The exemption appears to be aimed at providing a financial benefit to service industry workers by allowing them to keep more of their tip income without additional tax burden.
Committee Categories
Budget and Finance
Sponsors (20)
Julian Bradley (R)*,
Rachael Cabral-Guevara (R)*,
Dan Feyen (R)*,
Rob Hutton (R)*,
André Jacque (R)*,
Steve Nass (R)*,
Romaine Quinn (R)*,
Cory Tomczyk (R)*,
Elijah Behnke (R),
Chanz Green (R),
Rick Gundrum (R),
Rob Kreibich (R),
Dave Maxey (R),
Jeff Mursau (R),
William Penterman (R),
Jim Piwowarczyk (R),
Paul Tittl (R),
Travis Tranel (R),
Ron Tusler (R),
Chuck Wichgers (R),
Last Action
Representative Melotik added as a cosponsor (on 07/02/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb36 |
Senate Substitute Amendment 1 | https://docs.legis.wisconsin.gov/document/amends/2025/REG/SB36-SSA1.pdf |
Fiscal Note - SB36: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/sb36/sb36_dor.pdf |
BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/SB36.pdf |
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