Missouri Legislature OKs easing employer tip tax duties

JEFFERSON CITY, Mo. -- A measure restaurant owners say is needed because of Missouri Department of Revenue attempts to collect more tax on cash tips is headed to the governor.

The Missouri Senate on Monday approved a measure that specifies restaurant owners are responsible for collecting income taxes only on cash tips a worker reports to them.

Restaurant owners have complained the Revenue Department has been trying to collect money from them when it appears servers have failed to report tips.

They say they have to trust workers to report those tips since, unlike with credit card payments, there's no way to track the amount.

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The tip tax bill is SB 336.

Online:

Senate: http://www.senate.mo.gov