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MN SF1006

Bill

Official Source

Status

Introduced

2/6/2025

Primary Sponsor

Steve Drazkowski

Click for details

Origin

Senate

94th Legislature 2025-2026

AI Summary

  • Tip income would be fully subtracted from Minnesota individual income tax, creating a state tax exemption for tips reported to employers or the IRS
  • Employers would no longer be required to withhold state income tax from employees' tip income
  • "Tips" are defined as amounts reported to employers under IRS Section 6053(a) or reported to the IRS as wages subject to employer tax demands under Section 3121(q)
  • Effective for taxable years beginning after December 31, 2024
  • Authored by Senators Drazkowski, Rarick, Housley, Draheim, and Lieske; introduced February 6, 2025 and referred to Taxes Committee

Legislative Description

Tip income exemption from the individual income tax and tax withholding requirements provision

Last Action

Referred to Taxes

2/6/2025

Committee Referrals

Taxes2/6/2025

Full Bill Text

No bill text available