AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

HB 5975 would allow workers who report tips (like servers or bartenders) to deduct the full amount of declared tips from their taxable income when filing state personal income taxes. This directly affects service industry workers who earn tips and report them to their employers. The bill amends tax law to create a specific deduction for tips declared during the tax year, reducing the income subject to tax. It does not cover unreported tips or change how tips are taxed at the federal level. The deduction applies only to tips actually reported to the employer, making it a concrete tax relief measure for eligible workers.