Reactions are pouring in from local service workers and business patrons following the U.S. Senate's early-morning passage of the "No Tax on Tips Act", a new bill aimed at easing the tax burden on millions of Americans who rely on tips to make a living. Passed unanimously at a session that began at 1 a.m. Wednesday, the bipartisan legislation would allow tipped workers who earn under $160,000 annually to deduct up to $25,000 in reported tips from their federal income taxes. Supporters say the legislation is a much-needed break for workers who are often underpaid and overlooked in tax relief discussions. But others are still seeking clarity about how it will play out in real life and what it would look like from paycheck to paycheck. "Ask any bartender — we live off tips. That's how we survive, that's how we pay our bills," Brooks Byrne, a server in St. Pete, said. "I don't think it's going to make much of a difference. It's already happening because people don't declare cash tips. We have to declare credit card tips," Byrne said. One common point of confusion is what qualifies as a "cash tip" under the bill. Despite the wording, the legislation defines "cash tips" broadly to include credit and debit card tips, checks and electronic payments like Cash App, Venmo or Zelle. However, the caveat is that such tips would qualify for the exemption as long as they are reported to the employer per IRS rules and requirements. An estimated 90 to 95% of tips today are processed through card transactions. "If everyone either paid in cash or the government stopped taxing all tips, including credit card tips, it would mean 20 to 25% of my income, money that doesn't go to me right now would start going to me," Trevor Montavon, another local server, said. For many in the service industry — including restaurant staff, nail technicians, beauticians and rideshare drivers — that change is significant and could be transformative. "I could use it to pay more of my bills in this inflationary economy," Montavon added. "I could use it to save, or even invest." The perspectives are not limited to the workers alone, as customers are also weighing in on the bill's potential impact. "I like the direction of the bill," Jimmie Bodrato, a regular diner at a downtown St. Pete restaurant, said. "I like the direction of anything that can help the economy and specifically for people who work in these jobs." Bodrato also believes the measure might change consumer behavior and influence how people tip. "I think this could motivate a lot of people who just throw that tip on their credit card into saying, you know what, I'm going to give a cash tip this time, so I believe that would help. Hopefully, it generates good-hearted people to just go to the cash and leave that cash tip. That's kind of what I'm hoping for, but we'll see," Bodrato said. Yet, cash is increasingly scarce in the digital-cashless economy. "Cash is king, they say. People do like to leave it when they have it," Byrne said. "But not a lot of people carry cash anymore." The bill also includes provisions for businesses, expanding the employer tax credit for payroll taxes on reported tips. This now includes more industries, such as beauty and personal care services, which were previously excluded. This version of the legislation is now headed to the House of Representatives next, where its fate remains unclear. Lawmakers will decide whether to pass it as a standalone bill or include it in a broader tax reform package informally known as the "Big Beautiful Bill." If it is passed, President Trump is expected to sign it into law, potentially making the tax break available in time for the next tax season. For now, service workers are cautiously optimistic, even if some final details are still up in the air.