State Senator Rosilicie Ochoa Bogh, District 23 | Twitter Website
State Senator Rosilicie Ochoa Bogh, District 23 | Twitter Website
Senator Suzette Martinez Valladares of Santa Clarita has introduced a new bill aimed at exempting tips from state income tax in California. The legislation, which was presented on the first day of the session, is a collaborative effort with Senators Rosilicie Ochoa Bogh and Shannon Grove. The proposal seeks to provide financial relief for service and hospitality workers who have been affected by rising living costs.
"During my twenties, I was a struggling student working as a waiter to make ends meet. I know firsthand how hard service workers hustle every day," stated Senator Valladares. "Hardworking employees in the service industry deserve to keep more of what they earn – it’s time to ease their tax burden and help them get ahead."
The bill, known as SB 17, addresses the financial challenges faced by many Californians due to increased prices for essentials like groceries and utilities. It aims to improve affordability for those whose incomes rely heavily on tips.
Senator Ochoa Bogh shared her personal connection to the issue: "Members of my family, including my mom as a single mother, have lived the daily struggles of working in the service industry. Tips aren’t regular income, yet they’re taxed as if they are. They’re not guaranteed, they’re not consistent, and they’re rarely enough to make ends meet. It’s time for California to provide relief to these hardworking individuals."
The proposed policy would ensure that all tip earnings remain with those who earned them, potentially benefiting local communities by increasing consumer spending power.
"I am incredibly proud to joint author this legislation to help struggling workers keep more of their earnings," commented Senator Grove. "By not taxing tips, it will allow those who work in the service industry, from wait staff, to delivery and ride-share drivers, to keep the extra gratuity given to them for excellent service."
SB 17 could significantly impact millions of workers across California's restaurant, hospitality, and service sectors who depend on tips for their livelihood.
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