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House advances bill exempting tips from tax after rejecting income cap amendment
Summary
House Bill 2081, which would exempt tip income from state taxation, advanced after the House rejected a floor amendment that would have capped the exemption at 80% of area median income; debate focused on fiscal impact and compliance concerns.
The Arizona House advanced House Bill 2081, a measure to remove tax on tips, after the panel adopted committee amendments and rejected a floor amendment that would have limited the benefit by income. The Committee of the Whole recommended the bill do pass as amended and the House subsequently adopted that recommendation.
Representative Griffin, the bill sponsor on the floor, said "tips in my opinion are gifts and should not be taxed," arguing the change would benefit low- and middle-income workers who receive…
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