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 calculating taxable income for nonresidents and part-year residents, thereby simplifying the tax calculation process for these individuals.

Furthermore, the bill repeals two existing provisions under 71.63 (6) (n) that previously outlined conditions related to tips paid to employees. The renumbered and amended section now focuses on the general treatment of tips without the previously specified conditions. The changes are set to take effect for taxable years beginning after December 31, 2024, and the bill may be reviewed by the Joint Survey Committee on Tax Exemptions due to its implications on state tax policy.

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