The bill H. 3779 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. The bill also provides a definition of "tips," describing them as discretionary payments made by customers to employees, which can include cash tips and tips received through electronic payment methods.

This amendment aims to clarify the treatment of tips in the context of state income tax, ensuring that they are not counted as part of gross income. The bill is set to take effect upon approval by the Governor, reflecting a legislative effort to potentially ease the tax burden on employees who receive tips as part of their compensation.

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