KHTS Radio Santa Clarita Radio – Santa Clarita News
Senator Suzette Martinez Valladares, R-Santa Clarita announced Thursday that she introduced legislation alongside Senator Rosilicie Ochoa Bogh, R-Yucaipa and Senator Shannon Grov R-Bakersfield to exempt tips from state income tax.
The bill, introduced on the first day of session, would provide immediate relief for California’s service and hospitality workers, given the cost of living increases in recent years.
“During my 20s, I was a struggling student working as a waiter to make ends meet. I know firsthand how hard service workers hustle every day,” Martinez Valladares said. “Hardworking employees in the service industry deserve to keep more of what they earn — it’s time to ease their tax burden and help them get ahead.”
Everyday essentials like groceries and utilities cost significantly more today than ever before — stretching most households thin.
With millions working jobs that receive tips, this bill, SB 17, would offer back some affordability to our dedicated service and hospitality workers.
“Members of my family, including my mom as a single mother, have lived the daily struggles of working in the service industry,” said Senator Ochoa Bogh. “Tips aren’t regular income, yet they’re taxed as if they are. They’re not guaranteed, they’re not consistent, and they’re rarely enough to make ends meet. It’s time for California to provide relief to these hardworking individuals.” The new policy would ensure every dollar left as a tip directly goes into the pockets of those who earned it.
More money in the hands of everyday consumers will have a positive effect on their communities, helping small businesses.
“I am incredibly proud to joint author this legislation to help struggling workers keep more of their earnings. By not taxing tips, it will allow those who work in the service industry, from wait staff, to delivery and ride-share drivers, to keep the extra gratuity given to them for excellent service,” said Senator Grove. “When we make the service economy more prosperous, it will only further boost our local economy and attract more people into the workforce.”
SB 17 has the potential to bring real benefits to millions of workers in California, particularly those in the restaurant, hospitality and service sectors, many of whom rely on tips to survive.
Ed. Note: The above information was provided to KHTS Radio by Valladares’s Office.
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While many in the service industry struggle; what about workers in the service industry who don’t receive tips? What relief do they get? I also know some professional waiters who own very nice homes and are the only wage earner in the household; and you’re saying they shouldn’t pay income taxes. I was a public servant for 36 years and now live on a modest pension, I pay income taxes on this. I receive benefits from public services, roads, etc. I will really think twice on how much and when I tip if this bill passes.