Hawaii HB520 would exclude tips from state income taxes to help local small businesses attract employees.
Hawaii HB520 proposes to amend state tax law by excluding tips from gross income, adjusted gross income, and taxable income. This change aims to support local small businesses by making employment more attractive. The bill defines "tips" as gratuities or voluntary monetary contributions reported to employers for federal tax purposes. The Director of Taxation will prepare necessary forms and rules to implement this exclusion.
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