The bill S. 234 proposes an amendment to Section 12-6-1120 of the South Carolina Code of Laws, which pertains to the computation of gross income for state income tax purposes. The key change introduced by this bill is the exclusion of tips from the calculation of South Carolina gross income. Specifically, it defines "tips" as discretionary payments made by customers to employees, which can include cash tips and electronic payments.

This amendment aims to provide clarity on the treatment of tips in the context of state income tax, ensuring that they are not counted as part of gross income. The bill will take effect upon approval by the Governor, thereby impacting how income is reported and taxed for individuals receiving tips in South Carolina.

Statutes affected:
01/16/2025: 12-6-1120
Latest Version: 12-6-1120