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Nixon signs bill to ease tip tax requirements on restaurants

June 23, 2015 at 6:38 a.m. | Updated June 23, 2015 at 6:38 a.m.

JEFFERSON CITY, Mo. (AP) -- A Missouri measure set to take effect this year will ensure restaurant owners are responsible only for collecting income taxes on cash tips workers report to them.

The legislation signed Monday by Gov. Jay Nixon is in response to a Department of Revenue practice criticized by restaurant owners.

Owners have complained that the agency has been trying to collect money from them when it appears that servers have failed to report tips. Restaurant owners say they trust workers to report cash tips because there's no way to track how much they make.

Lee's Summit Republican Sen. Will Kraus, who sponsored the bill, says the measure will mean businesses no longer are responsible if their employees don't report all their tips.

Kraus is running for secretary of state in 2016.

The tip tax bill is SB 336.




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