Senate: Leber

Attorney: Moffitt

Drafting Assistant: Warner

Date: January 13, 2025

DOC. ID.: /SENATE RESEARCH/KM/DRAFTS/SR-0176KM25/SR-0176KM25.DOCX

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-6-1120, RELATING TO GROSS INCOME, COMPUTATION OF GROSS INCOME, AND MODIFICATIONS TO GROSS INCOME FOR STATE INCOME TAX PURPOSES, SO AS TO EXCLUDE TIPS FROM THE COMPUTATION OF SOUTH CAROLINA GROSS, AND TO DEFINE TIPS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.  Section 12-6-1120(3) of the S.C. Code is amended to read:

    (3) Reserved.South Carolina gross income does not include tips received during the taxable year that are included on statements furnished to the recipient's employer required by federal law. For the purposes of this item, "tips" are discretionary payments determined by a customer that an employee receives from the customer, including, but not limited to, cash tips received directly from the customer and tips from a customer through electronic settlement or payment.

SECTION 2.  This act takes effect upon approval by the Governor.

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