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." This change aims to provide an income tax exemption for individuals receiving tips, thereby potentially increasing their take-home pay.

If enacted, this amendment will take effect upon approval by the Governor and will apply to tax years beginning after 2024. The bill is currently sponsored by Rep. Pace and has been prefiled in the House as part of the legislative process for the 2025-2026 session.

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