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Sponsor proposes ban on taxing tips for servers, sparking equity and enforcement questions
Summary
Representative Lorenz told the committee House Bill 209 would bar taxation on tips earned by service workers; lawmakers questioned equity across wage types, potential employer/employee shenanigans, and asked for fiscal analysis.
Representative Lorenz told the House Ways and Means Committee House Bill 209 would bar state taxation on tips earned by service workers such as servers and bartenders.
"Tips are a reward for hard work, not something the government should be dipping into," Representative Lorenz said, arguing the policy would let service workers "keep what they earn."
Committee members…
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