Bill > H3251

This bill proposes to modify the Massachusetts tax code by excluding tip income from an employee's taxable income. Specifically, the bill amends Chapter 62 of the Massachusetts General Laws by adding a new provision that would allow workers to subtract the net amount of tips they receive from their Part B adjusted gross income when calculating their state taxes. The term "tips" is referenced using the definition provided in Chapter 149, Section 152A of Massachusetts law. This change would effectively reduce the taxable income for employees who receive tips, such as restaurant servers, bartenders, and other service industry workers, potentially providing them with a financial benefit by lowering their overall tax liability. The bill is straightforward in its approach, simply adding one line to the existing tax law to create this new tax exemption for tip income.

Budget and Finance

https://malegislature.gov/Bills/194/H3251