Excludes tips from gross income tax.

This bill would exclude tips from being counted as taxable income for New Jersey state income tax purposes. Currently, tips are included in the definition of gross income alongside wages, salaries, and other compensation. The bill would amend New Jersey's tax code to remove "tips" from the list of taxable income categories and specifically treat tips as "property acquired by gift," which is already excluded from gross income. This change would directly affect service industry workers who receive tips as part of their compensation. The bill would apply to taxable years beginning on or after January 1 following its enactment.