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MN SF1525

Bill

Official Source

Status

Introduced

2/17/2025

Primary Sponsor

Keri Heintzeman

Click for details

Origin

Senate

94th Legislature 2025-2026

AI Summary

  • Tip income becomes a subtraction from Minnesota individual income tax, effectively exempting tips from state income taxation
  • "Tips" are defined 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)
  • Employers are no longer required to withhold Minnesota state income tax from employees' tip income
  • Removes existing statutory provisions governing how employers 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 provision

Last Action

Chief author added Heintzeman

5/18/2025

Committee Referrals

Taxes2/17/2025

Full Bill Text

No bill text available