RELATING TO TAXATION.

HB 520 excludes tips received by employees from state income tax calculations, meaning workers will not pay state income tax on money earned from tips. This directly affects tipped employees, such as those in restaurants or hospitality, who currently have tips included in their taxable income. The bill changes the definition of taxable income by specifically removing tips from gross, adjusted gross, and taxable income for state tax purposes. The policy change would reduce the state tax burden for eligible employees without altering federal tax treatment.