AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

SB 47 would create a personal income tax deduction of up to $25,000 for tips or gratuities reported by workers in occupations that customarily receive tips (as defined by the IRS, such as servers or bartenders). This deduction directly affects service industry workers who declare tip income on their tax returns. The bill amends tax law to allow these taxpayers to reduce their taxable income by the amount of declared tips, potentially lowering their overall tax bill. It applies only to tips actually reported to the IRS, not unreported income.