Arizona legislation to end state income taxation of tips advanced out of the House Ways and Means Committee.
“I worked in the service industry years ago and understand the challenges tipped employees face,” state Rep. Gail Griffin, R-Hereford, said in a statement.
“Tips are an expression of appreciation from customers for services provided. Tips are gifts and, in my opinion, should not be taxed. HB2081 ensures that Arizonans who rely on tips to support themselves and their families can keep more of their hard-earned money. I’m grateful to Chairman Olson for making this the committee’s first bill for the session,” she continued.
All Republicans on the committee voted in favor, whereas Democrats voted against it. Rep. Seth Blattman, D-Mesa, noted that he would potentially support the bill if it had an income cap amendment to “make up for the revenue” that could be lost with the subtraction.
