Assembly Bill 38 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 streamlining the tax calculation process for these individuals.

Furthermore, the bill repeals two specific 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 this section reflect the changes made by the bill. The changes are set to take effect for taxable years beginning after December 31, 2024, indicating a future implementation of the proposed tax exemption.

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