Oregon State Senator Proposes 'No Tax on Tips' Bill for 2025 Legislative Session

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State Senator Dick Anderson (R-Lincoln City) has introduced a legislative concept for a "No Tax on Tips" bill, aiming to provide much-needed financial relief to Oregon’s service industry workers. The proposed legislation, set to be considered in the 2025 legislative session, seeks to fully exempt tips from state income tax, a move Anderson says will help workers who are increasingly burdened by rising living costs.

“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,” Anderson stated. “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.”

The bill targets Oregon’s service industry workers, including waitstaff, bartenders, and other tipped employees who depend on tips as a vital supplement to their wages. Currently, these tips are subject to state income tax, which Anderson argues reduces their take-home pay and increases their financial stress.

According to Anderson, the "No Tax on Tips" bill would offer immediate financial relief to these workers by allowing them to retain more of their hard-earned money. “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,” he said. “This bill is a direct response to those concerns and a step toward easing the burden on our service workers.”

Anderson, who represents Oregon Senate District 5, emphasized his commitment to working with fellow legislators to ensure the bill's passage. As the 2025 legislative session approaches, the bill is expected to generate significant discussion, particularly among those in Oregon’s robust service industry.

The "No Tax on Tips" bill represents a key piece of Anderson’s legislative agenda, reflecting his focus on economic policies that benefit working Oregonians. The proposal is part of a broader conversation about how to address the financial challenges facing service workers in the state.