The subcommittee reviewed S.234, a bill that would exclude tips from the calculation of gross income for state individual income tax purposes. Committee staff summarized the bill and sponsors said they plan to refine language before returning to the panel.

Grant, the committee staff member, summarized the bill as excluding from gross income tips that are included on tip statements furnished to employers under federal law and defining tips to include discretionary cash and electronic payments from customers. The bill as presented would take effect upon the governor’s approval, staff said.

Senator Larry Lieber (bill sponsor) told the subcommittee the proposal is popular in his area and framed the measure as a tax cut: "This bill is simply stolen from Donald Trump's agenda. No tax on tips. It's gonna be wildly popular in my area," he said. The sponsor and other lawmakers discussed that the measure would apply to anyone receiving tips—not only restaurant workers—but also raised questions about potential avoidance or improper use of the rule.

The senator from Greenville asked whether the measure applied beyond the hospitality sector; staff answered it applies to "anyone receiving tips." Another senator raised a hypothetical about using a tip payment to avoid taxation on non‑tip income and called the scenario possibly unlawful; the sponsor agreed it warrants review and said committee staff could refine language.

Senators agreed to carry the bill over so the sponsor and colleagues could draft a perfecting amendment; a motion to carry the bill passed by voice vote. The subcommittee will revisit S.234 at a later date with proposed clarifications, including suggested amendments from members and staff.

No formal roll‑call vote was recorded in the transcript: the action was reported as a voice vote and the chair announced the bill would be carried over.