Oregon coast lawmaker plans to introduce ‘No Tax on Tips’ bill in 2025 legislative session
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LINCOLN CITY, Ore. (KTVZ) -- Oregon state Senator Dick Anderson (R-Lincoln City) announced Monday that he has submitted the legislative concept for a “No Tax on Tips” bill ahead of the 2025 legislative session, echoing a high-profile proposal from the presidential campaign.
"This legislation is designed to provide financial relief to Oregon's service industry workers, who are increasingly squeezed by rising inflation and poor economic policies, by fully exempting tips from Oregon state income tax," the announcement said, which continues in full.
“With high costs crushing Oregon workers, it's more important than ever to support policies that put money back in the pockets of those who need it most,” said Senator Anderson. “Service industry employees rely on tips as a significant part of their income, and taxing these earnings only exacerbates the financial strain they face. This bill is a pro-worker initiative that ensures fairness by letting workers keep more of what they earn.”
Oregon's service industry workers, including waitstaff, bartenders, and other tipped employees, often see tips as a crucial supplement to their wages. However, the current taxation on these tips reduces their take-home pay, adding to the economic pressures of everyday life. The “No Tax on Tips” would provide immediate financial relief to service workers across the state.
“I recently toured my entire district with over 20 town halls and I heard loud and clear that Oregonians are struggling to make ends meet in today’s economic climate,” Senator Anderson continued. “This bill is a direct response to those concerns and a step toward easing the burden on our service workers. I’m committed to working with my colleagues in the Legislature to ensure this bill passes.”