Senator Suzette Valladares (R-Santa Clarita) announced that her bill to exempt tips from taxes, (SB 17) has passed unanimously out of the Senate Revenue and Taxation Committee with a 5-0 vote.

The bill, introduced on her first day of session, would provide immediate relief for California’s service and hospitality workers.

“I’m grateful to the committee chair, Senator McNerney, and the other members for their support of this important tax relief measure for California’s service workers,” said Valladares. “During my twenties, I was a struggling student working as a waiter to make ends meet. I know firsthand how hard it is to earn a living in the service industry. These hardworking Californians should be able to keep more of what they earn, it’s time to ease their tax burden and help them get ahead

Under SB 17, workers earning tips would be eligible for the deduction if their adjusted gross income is under $125,000 for individuals or $250,000 for joint filers. The bill also updates the state’s tax code to align the definition of tips with federal standards while excluding licensed professionals, except barbers and cosmetologists, from claiming the deduction.

This bill, which is joint authored with Senator Rosilicie Ochoa Bogh (R–Yucaipa) and Senator Shannon Grove (R-Bakersfield), aims to bring much-needed relief to Californians who rely on tips to survive.

SB 17 will now be moved to the Labor, Public Employment and Retirement Committee.