On the first day of the new legislative session, Senator Rosilicie Bogh (R-Yucaipa), joined by Senators Shannon Grove (R-Bakersfield) and Suzette Valladares (R-Santa Clarita) as joint authors, introduced Senate Bill 17 to exempt tips from state income taxes, delivering much-needed financial relief to workers in California’s service and hospitality industries.

This effort follows Senator Ochoa Bogh’s attempt to push similar legislation at the end of the previous legislative session, underscoring the senators’ unwavering commitment to supporting working-class Californians.

“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 proposed legislation reflects bipartisan recognition of the unique nature of tips as a gesture of gratitude for exceptional service, rather than a dependable source of income. Both President-elect Donald Trump and Vice President Kamala Harris have voiced support for a federal tax exemption on tips, a rare point of agreement that underscores the importance of this issue.

“I am incredibly proud to joint author this legislation along with Senator Rosilicie Ochoa Bogh 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 Shannon Grove. “When we make the service economy more prosperous, it will only further boost our local economy and attract more people into the workforce.”

“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,” said Senator Suzette Martinez Valladares. “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.”

Senator Ochoa Bogh emphasized the historical opportunity this legislation represents. “Together, we have a chance to make history and provide relief to millions of Californians. The service and hospitality industry workers who rely on tips to get by deserve our support. This is a moment to stand with them, not against them.”

SB 17 has the potential to bring tangible benefits to millions of workers in California, particularly those in the restaurant, hospitality and service sectors, many of whom rely on tips to survive.