The bill H. 3435 proposes an amendment to Section 12-6-1120 of the South Carolina Code of Laws, specifically addressing the treatment of gratuities and tips in relation to gross income. The new legal language states that "South Carolina gross income does not include compensation received in the form of gratuity or tip," effectively exempting these forms of compensation from being counted as gross income for tax purposes.

If enacted, this amendment would take effect upon approval by the Governor and would apply to tax years beginning after 2024. This change aims to provide tax relief for individuals who receive gratuities and tips, which are common in service-oriented industries.

Statutes affected:
12/05/2024: 12-6-1120
Latest Version: 12-6-1120
12/06/2024: 12-6-1120