Plain English Breakdown
The official text confirms the bill passed both chambers and reached final enrollment, but no effective date is listed in the provided metadata or summary.
HB1416: Excluding Tips from Georgia State Income Tax
This bill changes Georgia state income tax laws to exclude tips from taxation.
What This Bill Does
- Amends Article 2 of Chapter 7 of Title 48 in the Official Code of Georgia Annotated regarding state income tax rates, computation, exemptions, and credits.
- Excludes tips from being taxed under the state income tax system.
- Provides for reporting requirements by employers related to these changes.
- Includes a definition for terms used within this bill.
- Repeals any existing laws that conflict with this act.
Who It Names or Affects
- Employees who receive tips, as their tip income is excluded from taxation under this law.
- Employers in Georgia, who must follow new reporting requirements specified by the bill.
Limits and Unknowns
- The official text provided does not state a specific effective date for when this law will take effect.
- While the summary mentions employer reporting and definitions, it does not detail exactly what information must be reported or how often.
- The source material does not specify if the definition of 'tips' includes digital payments, cash only, or other forms.