BILL NUMBER: S587
SPONSOR: MARTINS
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax deduction
for cash tips received
 
PURPOSE:
To eliminate State taxes on tip-wage earners.
 
SUMMARY OF PROVISIONS:
Section 1. amends subsection c of section 612 of the tax law. Section
2. Sets the effective date which applies to all taxable years beginning
on ò or after January 2025.
 
JUSTIFICATION:
Tip wage earners are the people we see every day. They cut our hair,
serve us meals, deliver our groceries, drive our rideshare, and take.
our coffee orders. Most typically, tipped work is in the service and
hospitality industry, and tend to be younger than most of the working
population - 20-34 years old according to the Budget Lab at Yale Univer-
sity. To help working families and young workers, this bill would elimi-
nate taxes on tips, thus economically empowering workers. The time has
corn e for the government to stop taking from our most vulnerable
employees - tipped workers
 
LEGISLATIVE HISTORY:
S.9907; Referred to Rules
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately, and apply to all taxable years
beginning on or after January 1, 2025.

Statutes affected:
S587: 612 tax law, 612(c) tax law