Paid gratuities to employees tax subtraction provision

SF 587 amends Minnesota's tax code to allow individuals to subtract gratuities (tips) received from employees when calculating their taxable income. This change directly affects Minnesota residents who earn tips as part of their income, such as servers or bartenders. The bill adds a new provision (subdivision 36) to Minnesota Statutes section 290.0132, defining "gratuities" per existing law and specifying they are deductible. The policy takes effect for taxable years starting after December 31, 2024. This is a concrete tax code adjustment, not a procedural change.