SF1525 (Legislative Session 94 (2025-2026))
Tip income exemption from the individual income tax and tax withholding requirements provision
Related bill: HF1368
AI Generated Summary
This legislative bill, S.F. No. 1525, proposes to exempt tip income from individual income tax and withholding requirements in Minnesota. It seeks to amend existing tax laws to officially classify tip income as a non-taxable subtraction when individuals report it to their employers, in accordance with federal tax code regulations. This means that tips won't be included in the taxable income of workers who earn them, potentially decreasing the overall tax burden on such employees.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| February 16, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"A new subdivision exempting tip income from withholding requirements."
],
"removed": [],
"summary": "This bill amends the tax withholding requirements under section 290.92, subdivision 2a, specifically addressing how tip income is treated.",
"modified": []
},
"citation": "290.92, subdivision 2a"
},
{
"analysis": {
"added": [
"A subdivision defining tip income as exempt from individual income tax."
],
"removed": [],
"summary": "This bill introduces a new subdivision to existing section 290.0132 concerning individual income tax.",
"modified": []
},
"citation": "290.0132"
}
]