RELATING TO TAXATION.

HB 520 would exempt tips received by employees from state income tax calculations, meaning tip income would no longer count toward an employee's taxable income. This directly affects service industry workers, such as servers and bartenders, who rely on tips as part of their earnings. The bill removes tips from gross income, adjusted gross income, and taxable income for state tax purposes. Currently pending in committee, the bill has not advanced beyond the referral stage in the 2025 session.