Bill > HB1467

This bill modifies the Pennsylvania Tax Reform Code by clarifying the definition of compensation for personal income tax purposes. Specifically, the bill removes the word "tips" from the existing law and explicitly states that tips and gratuities shall not be considered compensation under the tax code. This means that tips received by workers, such as restaurant servers or other service industry employees, will be explicitly excluded from the definition of taxable compensation. The change provides greater clarity about the tax treatment of tips, ensuring that these additional earnings are not subject to personal income tax. The bill will go into effect 60 days after its passage, giving taxpayers and tax authorities time to understand and implement the new provision. This modification is part of ongoing efforts to refine and clarify tax regulations in Pennsylvania.