Senate Bill 399 Raises Concerns for Service Industry Workers in Montana

The recent implementation of Senate Bill 399 in Montana has left service industry workers like John Wand feeling anxious about their financial stability. The bill, which went into effect on Jan. 1, 2024, requires tips to be reported alongside state taxes, a change that has many workers concerned about their future earnings.

Wand, a server at Stella’s Kitchen & Bakery, expressed his worries about the impact of the new bill on his income. “The tips are, like, the main reason I work here. I might have to get another job now, I guess,” Wand said, reflecting the uncertainty faced by many service workers in the state.

Introduced by Sen. Greg Hertz, the bill aims to level the playing field by ensuring that all income, including tips, is taxed fairly. Hertz explained that the changes in the tax system will benefit Montana taxpayers, with lower-income individuals set to save on income taxes.

However, for workers like Wand, who rely heavily on tips to make ends meet, the changes are causing stress and concern. Stella’s owner, Steve Wahrlich, highlighted the impact of the bill on his employees, noting that the tip-pooling system in place at the restaurant ensures that all workers are fairly compensated.

As service workers grapple with the implications of Senate Bill 399, they are left wondering about their financial futures and the potential need to seek additional employment to make up for any lost income. The changes won’t be reflected until tax season in 2025, but the uncertainty surrounding their earnings is already causing distress among workers in the service industry.