DEDUCTION FOR GRATUITIES
House Bill 5034
Sponsor: Rep. Jason Allen
Committee: Tax Policy
Complete to 8-23-01
A SUMMARY OF HOUSE BILL 5034 AS INTRODUCED 7-12-01
The bill would amend the Income Tax Act to allow for the deduction from taxable income of gratuities received in the tax year, not to exceed $10,000. This would apply for tax years beginning after December 31, 2000.
The term "gratuities" would mean tips or voluntary monetary contributions received by an employee from a guest, patron, or customer that the employee reports to the employer for the purpose of the Federal Insurance Contributions Act (FICA).
MCL 206.30
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.