SF1006

SF1006 (Legislative Session 94 (2025-2026))

Tip income exemption from the individual income tax and tax withholding requirements provision

AI Generated Summary

This bill proposes to exempt tip income from individual income taxes and from tax withholding requirements in Minnesota. It aims to amend the Minnesota Statutes by adding specific subdivisions that would define tip income as the amounts individuals report to their employers or the IRS, which are typically subject to taxes. If passed, this law would make the portion of income earned as tips non-taxable for the purposes of state income tax calculations.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 05, 2025	Senate	Floor	Action	Introduction and first reading
February 05, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the requirement for individuals to report tip income to their employer.",
      "modified": [
        "Clarifies the type of income considered as tips for tax purposes."
      ]
    },
    "citation": "6053(a) of the Internal Revenue Code"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the treatment of tip income as it relates to employer taxes.",
      "modified": [
        "Specifies that tips are subject to employer tax payment requirements."
      ]
    },
    "citation": "3121(q) of the Internal Revenue Code"
  }
]