February 17, 2025 - Introduced by Representatives Tusler, Behnke, Green, Gundrum, Kreibich, Maxey, Mursau, Penterman, Piwowarczyk, Tittl, Tranel and Wichgers, cosponsored by Senators Jacque, Bradley, Hutton, Cabral-Guevara, Feyen, Nass, Quinn and Tomczyk. Referred to Committee on Ways and Means.
AB38,1,7
1An Act to repeal 71.63 (6) (n) 1. and 71.63 (6) (n) 2.; to renumber and amend 271.63 (6) (n) (intro.); to amend 71.05 (6) (b) 19. cm., 71.05 (6) (b) 19. dm., 71.05 3(6) (b) 28. e., 71.05 (6) (b) 28. f., 71.05 (6) (b) 32. b., 71.05 (6) (b) 32. c., 71.05 (6) 4(b) 33. b., 71.05 (6) (b) 33. c., 71.05 (6) (b) 35. c., 71.05 (6) (b) 35. d., 71.05 (6) (b) 538. c., 71.05 (6) (b) 38. d., 71.05 (6) (b) 42. c., 71.05 (6) (b) 42. d. and 71.05 (6) (b) 643. f.; to create 71.05 (1) (j) of the statutes; relating to: an income tax
7exemption for cash tips paid to an employee. Analysis by the Legislative Reference Bureau
This bill creates an income tax exemption for cash tips received by an employee from the customers of the employee’s employer.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB38,1
1Section 1. 71.05 (1) (j) of the statutes is created to read: AB38,2,3271.05 (1) (j) Tips. Amounts received as cash tips by an employee from the 3customers of the employee’s employer. AB38,24Section 2. 71.05 (6) (b) 19. cm. of the statutes is amended to read: