The legislative bill S.F. No. 1488 proposes to exempt tip income from individual income tax and withholding requirements in Minnesota. The bill aims to amend the state statutes to clearly define "tip income" as any amounts that a worker reports to their employer—as required by law—or to the IRS. This means that money received as tips would not be counted as taxable income under Minnesota's state income tax laws, potentially reducing the tax burden on workers who earn a significant portion of their income from tips.