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MN SF1488
Bill
Status
Introduced
2/17/2025
Primary Sponsor
Karin Housley
Click for details
AI Summary
- Creates a state income tax subtraction for tip income, allowing workers to exclude tips from their Minnesota taxable income
- Defines qualifying "tips" as amounts reported to employers under IRS section 6053(a) or reported directly to the IRS as wages subject to employer tax demands under section 3121(q)
- Exempts tip income from Minnesota employer withholding requirements, removing the obligation for employers to withhold state taxes on reported tips
- Deletes existing statutory language that had governed how employers could withhold taxes on tips from other wages
- Effective for taxable years beginning after December 31, 2024
Legislative Description
Tip income exemption from the individual income tax and tax withholding requirements
Last Action
Author stricken Eichorn
3/24/2025
Committee Referrals
Taxes2/17/2025
Full Bill Text
No bill text available