Labor & Employment (Minimum Wage)

HB 5087 would create a state-level personal income tax deduction for taxpayers who earn tips or overtime pay, mirroring the existing federal tax treatment for these income types. It directly affects workers in service industries (like restaurants or hospitality) who receive tips or earn overtime, as well as other earners with these income streams. The bill would amend tax law to allow these specific income categories to be deducted when calculating taxable income, similar to how they are treated federally. This policy change simplifies tax filing for affected workers by aligning state deductions with federal rules.

HB 5192 would create a new personal income tax deduction for workers who declare tips or gratuities to the IRS. Specifically, it adds a deduction for the full amount of tips reported by taxpayers in their annual tax filings. This directly affects service industry workers (like servers, bartenders, and hair stylists) who receive tips as part of their income. The policy change would reduce taxable income for these workers by the amount of their declared tips, lowering their overall tax bill.