ARIZONA POLITICS NEWS

Bill to end taxes on tips advances in Arizona House

Jan 24, 2025, 4:45 AM | Updated: 11:54 am

PHOENIX — Employees who rely on tips across the state may no longer be required to pay taxes on their earnings thanks to a no tax on tips bill.

House Bill 2081 proposes an exempt tax on tipped wages in Arizona. The bill was passed by the House Committee on Ways and Means and was the first measure to move forward at the 57th Legislature.

Who backed the no tax on tips bill?

HB2081 was sponsored by Rep. Gail Griffin, R-Hereford, and was backed by Republicans, while Democrats were against the bill. The measure is a part of the Republican 2025 House Majority Plan to decrease taxes and to help boost the economy. According to the Republican website, 73% of Arizona voters feel that state taxes are too high, and another 94% are worried about inflation.

“I worked in the service industry years ago and understand the challenges tipped employees face,” Griffin said in a press release.

“Tips are an expression of appreciation from customers for services provided. Tips are gifts and, in my opinion, should not be taxed. HB2081 ensures that Arizonans who rely on tips to support themselves and their families can keep more of their hard-earned money. I’m grateful to Chairman Olson for making this the committee’s first bill for the session.”

On Wednesday’s hearing Democrats didn’t agree with the new measure. Joseph Palomino, Director of the Arizona Center for Economic Progress, spoke at the meeting in opposition of the bill and said it “would provide little benefit for tipped workers and leaves out most workers with low and moderate income.”

“HB2081 would create a situation, which taxpayers with similar incomes would be subject to different tax liabilities,” Palomino said at the hearing.

The bill will now move on to the Rules Committee before heading to the Senate.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona Politics News

Thomas Galvin AZ Political Podcast...

Jim Sharpe

AZ Political Podcast: Thomas Galvin on public funding for sports teams, speed of election results

On this week's edition of AZ Political Podcast, Thomas Galvin discusses public funding for sports teams and how election results can be sped up.

2 days ago

DOGE access lawsuit...

KTAR.com

Arizona to sue over DOGE access to government payment systems containing personal data

Arizona is about 12 states that plan to sue over DOGE access to government payment systems containing personal data

3 days ago

Follow @DannyShapiro13...

Danny Shapiro

Hundreds gather outside Arizona Capitol to protest Donald Trump, his policies

Hundreds gathered outside of the Arizona Capitol on Wednesday afternoon to protest Donald Trump and his policies they say are not right for the country.

4 days ago

Matt Kenney AZ Political Podcast...

Jim Sharpe

AZ Political Podcast: Matt Kenney on veterans issues and working with Pete Hegseth

Matt Kenney joins AZ Political Podcast to discuss what a grant freeze would mean for veterans and talks about his time working with Pete Hegseth.

9 days ago

An Arizona bill would require pornography websites to verify that their users are at least 18 years...

Kevin Stone

Arizona Republicans back bill to require age verification for pornography websites

A Republican-backed Arizona bill, if passed, would require pornography websites to verify the age of their users in the state.

10 days ago

Federal grants pause Kris Mayes Arizona...

Danny Shapiro

Arizona sues Trump administration over move to pause federal grants and loans

A federal judge has temporarily blocked the Trump administration's decision to pause federal grants and loans, but Arizona joined a lawsuit Tuesday aimed at making sure the plan never comes to light.

12 days ago

Sponsored Articles

...

Asset Preservation Wealth & Tax

How to optimize the most money in 2024 tax returns

As tax season begins, getting your financials in order is important to maximize your tax return.

...

Schwartz Laser Eye Center

Don’t miss the action with this game-changing procedure

PHOENIX -- The clear lens exchange procedure has emerged as a popular alternative to LASIK eye surgery.

...

Day & Night Air Conditioning, Heating and Plumbing

Why a Heating Tune-Up is Essential Before Winter

PHOENIX, AZ — With cooler weather on the horizon, making sure your heating system is prepped and ready can make all the difference in staying comfortable this winter.

Bill to end taxes on tips advances in Arizona House