RELATING TO TAXATION.

HB 575 creates a new income tax deduction specifically for tips received by tipped employees, such as restaurant servers and bartenders. This means workers can subtract their tip earnings from their taxable income, reducing the amount of income subject to state income tax. The bill directly affects service industry workers who rely on tips as a significant part of their compensation. The key provision establishes a clear, stand-alone deduction for tip income in the state's tax code.