This is dumb but politically necessary. Big issue in Nevada, good signifier of who is "on the side of the working person."
But specifically making tips non-taxable encourages more employment to be tip-based.
Makes more sense to cut taxes for these same people by expanding the tax bracket that goes untaxed (currently first $11k).
Turns out the one thing Blockchain is good at, building out decentralized strings of commonly agreed upon immutable transactions, is actually not that useful. For small items we need an "undo" button because people make sloppy mistakes or get scammed, for large items we want the government to act as enforcer of the property (house, dollars, car) in question so it doesn't actually help us to decentralize.