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Panel hears bill to temporarily exclude tips from state income tax
3082041 · April 21, 2025
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Summary
Assembly Bill 1443 would exempt tips from California state income tax for five years; the measure drew support from labor and industry groups and was referred to the committee's suspense file without a vote.
Assemblymember Castillo presented Assembly Bill 1443, a proposal to exclude tips from state income taxes for five years. Castillo said the change would provide immediate relief to service industry workers who rely on tips as a substantial portion of take-home pay.
"These are the people who put in long hours'servers, bartenders, barbers, hotel staff,…
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