HF417 (Legislative Session 94 (2025-2026))
Individual income tax subtraction provided for gratuities paid to employees.
Related bill: SF587
AI Generated Summary
This legislative bill aims to amend the Minnesota taxation laws by allowing individuals to subtract the amount they receive as tips or gratuities from their taxable income. This means that tips earned by employees will not be counted as part of their income when they calculate how much tax they owe. The specific details of what qualifies as "gratuities" is defined in another section of the tax code. This bill is intended to reduce the tax burden on employees who earn a significant portion of their income through tips.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"A new subtraction for gratuities paid to employees is introduced."
],
"removed": [
"No previous text was removed from section 177.23, subdivision 9."
],
"summary": "This bill references the definition of 'gratuities' as it pertains to taxation and income.",
"modified": [
"No modifications made to the existing definition of gratuities in section 177.23, subdivision 9."
]
},
"citation": "177.23, subdivision 9"
}
]