Senate Bill 36 proposes an income tax exemption for cash tips received by employees from customers of their employers. The bill introduces new legal language by creating a specific statute, 71.05 (1) (j), which defines cash tips as amounts received by employees. Additionally, the bill amends several existing statutes to remove references to "tips" in the context of taxable income calculations for nonresidents and part-year residents, thereby clarifying that cash tips will not be included in the taxable income for these individuals.

The bill also repeals two existing provisions under 71.63 (6) (n) that previously outlined conditions related to tips paid to employees. The renumbering and amendment of the introductory clause of 71.63 (6) (n) further streamlines the legal language. The changes are set to take effect for taxable years beginning after December 31, 2024, and the bill may be referred to the Joint Survey Committee on Tax Exemptions for further review.

Statutes affected:
Bill Text: 71.05(6)(b)19.cm, 71.05, 71.05(6)(b)19.dm, 71.05(6)(b)28.e, 71.05(6)(b)28.f, 71.05(6)(b)32.b, 71.05(6)(b)32.c, 71.05(6)(b)33.b, 71.05(6)(b)33.c, 71.05(6)(b)35.c, 71.05(6)(b)35.d, 71.05(6)(b)38.c, 71.05(6)(b)38.d, 71.05(6)(b)42.c, 71.05(6)(b)42.d, 71.05(6)(b)43.f, 71.63(6)(n)1, 71.63, 71.63(6)(n)2