An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income and providing for exclusion of tips from taxable income.

This bill amends Pennsylvania's Tax Reform Code to exclude tips from taxable personal income. It directly affects employees who receive tips, such as restaurant and hospitality workers, by removing these earnings from their taxable income calculations. The legislation defines tips as voluntary customer payments and explicitly excludes employer-mandated fees or service charges from this exclusion. The Department of Revenue will create regulations to implement the change and prevent fraud or misclassification of wages as tips. The law takes effect 60 days after passage and applies to the next fiscal year following that date.