Legislator proposes bill to exempt tips under New Jersey’s income tax

Senator Vince Polistina (R-2) is echoing President Trump’s plan to exempt tips at the federal level with a bill to do the same thing relative to the state’s gross income tax.

“Taxing tips is like taking credit for someone else’s hard work. These gratuities are a reward for excellent customer service, and workers deserve to keep their earnings without the government taking a cut,” said Polistina. “This is a common sense, pro-worker bill that will support our service industry, which is the backbone of Atlantic City and vital to many other communities across New Jersey.”

S-3741 would strike tips from the list of taxable New Jersey income categories.

Polistina’s district includes Atlantic City and multiple iconic shore communities where tips are a major part of the local economy.

“At the core of this legislation is easing the financial burden for many of the service industry workers who call New Jersey home,” added Polistina. “We have seen this topic discussed on a national platform as multiple states are pursuing similar legislation. This should be a bi-partisan issue supported by all to provide direct relief to some of our hardest working citizens.”

Matt Rooney
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MATT ROONEY is SaveJersey.com's founder and editor-in-chief, a practicing New Jersey attorney, and the host of 'The Matt Rooney Show' on 1210 WPHT every Sunday evening from 7-10PM EST.