KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB4051 • 2026

Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

Labor Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Joseph Aragona (District 60), Ron Robinson (District 58), Ken Borton (District 105), Jay DeBoyer (District 63), Angela Rigas (District 79), Douglas Wozniak (District 59), Kathy Schmaltz (District 46), Jimmie Wilson (District 32), Gina Johnsen (District 78), Matt Bierlein (District 97), Jerry Neyer (District 92), Mike McFall (District 14), Tom Kunse (District 100), David Martin (District 68), Timothy Beson (District 96), Jason Woolford (District 50)
Last action
2025-02-04
Official status
bill electronically reproduced 01/30/2025
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on which gratuities can be excluded, leaving this aspect uncertain.

Tax Changes for Tipped Workers

This law modifies the rules about what kinds of tips are not included in a worker's taxable income.

What This Bill Does

  • Changes the rules about what kinds of tips are not included in a worker's taxable income.
  • Modifies section 30 of the Michigan Compiled Laws Act 281, which deals with individual income taxes.

Who It Names or Affects

  • Tipped workers who receive gratuities as part of their job.

Terms To Know

tipped employees
Workers who earn a significant portion of their income from tips, such as waitstaff or bartenders.
taxable income
The amount of money that is subject to tax after deductions and exclusions are applied.

Limits and Unknowns

  • The exact details about which gratuities can be excluded from taxable income are not specified in the summary.
  • It's unclear how this change will affect state revenue or individual workers' taxes.

Bill History

  1. 2025-02-04 HJ 11 Pg. 89

    bill electronically reproduced 01/30/2025

  2. 2025-01-30 HJ 10 Pg. 86

    introduced by Representative Rep. Joseph Aragona

  3. 2025-01-30 HJ 10 Pg. 86

    read a first time

  4. 2025-01-30 HJ 10 Pg. 86

    referred to Committee on Finance

Official Summary Text

Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).