State senator introduces “Tax-Free Tips” bill

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GREEN BAY, Wisc. (WFRV) — There are tens of thousands of people work in the service industry in Wisconsin and many of them are given cash tips. Now an area lawmaker is proposing a bill to make those tips tax free.

Azshurdee Yoho is a server at Stadium View Bar and Grill where she does all she can to keep her customers happy.

It’s hard work and often she’s rewarded with cash tips.

“I’d say on a busy night,at least $200,” Yoho said.

Now a Republican state senator, André Jacque, is working on a bill to make sure Yoho gets to keep every penny of that cash.

“This bill, I think, is just common sense in terms of not taking money away from people who need it,” Jacque said.

Under this bill, authored by Jacque and a Republican representative from Mukwonago, cash tips received by an employee in various service industries would be exempt from state income tax. 

The money would still need to be reported on federal tax returns.

It’s extra money in their pocket, extra money they are able to use to support themselves and their families and the local economy.

-Andre Jacque, WI State Senator

If passed, Wisconsin would be the first state in the country with a state tax exemption for cash tips paid to service workers.

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