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Bill > SB0091
MI SB0091
Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).
summary
Introduced
02/19/2025
02/19/2025
In Committee
02/19/2025
02/19/2025
Crossed Over
Passed
Dead
Introduced Session
103rd Legislature
Bill Summary
A bill to amend 1967 PA 281, entitled"Income tax act of 1967,"by amending section 30 (MCL 206.30), as amended by 2023 PA 4.
AI Summary
This bill amends the Michigan Income Tax Act to add a new provision allowing tipped employees to deduct proven gratuities from their taxable income for tax years beginning on and after January 1, 2025. Specifically, the bill defines a "tipped employee" as someone who regularly receives more than $30.00 a month in gratuities, and "gratuities" are defined as tips or voluntary monetary contributions received from guests, patrons, or customers that are reported to the employer for federal insurance contributions act (FICA) purposes. Tipped employees can deduct these gratuities to the extent they are included in their adjusted gross income. This change aims to provide tax relief for workers in service industries who rely on tips as a significant part of their income, recognizing the unique compensation structure of jobs like servers, bartenders, and other service professionals who receive tips as a substantial portion of their earnings.
Committee Categories
Budget and Finance
Sponsors (7)
John Damoose (R)*,
Joe Bellino (R),
Kevin Daley (R),
Dan Lauwers (R),
Ed McBroom (R),
Jim Runestad (R),
Lana Theis (R),
Last Action
Referred To Committee On Finance, Insurance, And Consumer Protection (on 02/19/2025)
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://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0091 |
| BillText | https://legislature.mi.gov/documents/2025-2026/billintroduced/Senate/htm/2025-SIB-0091.htm |
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