TAX/INCOME-INDIV/EXEMPT: Authorizes an income tax deduction for certain amounts of tip income (OR DECREASE GF RV See Note)

HB 195 creates a new income tax deduction for certain tip income earned by workers in service industries, primarily affecting restaurant staff and similar tipped employees. The bill allows taxpayers to deduct 5% of their reported tip income from their taxable income (after an amendment reduced the rate from 25%). This directly lowers the amount of income subject to state income tax for qualifying workers. The provision applies to tips reported to employers, reducing their overall tax burden without changing existing tax brackets or rates.