The Jock Tax: The Tax That Athletes And Entertainers Pay To The States They Visit

An excerpt from Rick VanderKnyff:

The nonresident tax is nothing new. The Tax Foundation, however, says it took on a new life in 1991 when the Chicago Bulls beat the Los Angeles Lakers in the NBA Finals -- and the state of California decided to go after a piece of Michael Jordan's income. The Tax Foundation report says that Illinois decided to retaliate the following year by levying a jock tax of its own, dubbed "Michael Jordan's Revenge" in the press.

The tax was applied only to players from states that taxed visiting athletes, which at the time was only California. Today, according to the report, "of the 24 states that have a professional sports team, only four do not have a jock tax." In addition, a number of cities and other localities also have a jock tax.

This is how it works. A pro athlete can be liable for taxes in two primary states, the state where the team is based and the state of residency. They can make it easier on themselves by living in a state without a personal income tax -- which is why so many pros live in Florida.

When they travel with their team, they are also liable for taxes in states with a jock tax. These states calculate the number of "duty days" a visiting athlete spends there for a road game, then send a tax bill for a prorated piece of the athlete's annual income. There is no nationwide standard for calculating what constitutes a duty day.

Comments

[termal jel]

Arranged for the relatives of the meeting, reminding Ozcan kanserlilerle hematologic disease can not be prevented, meeting relatives of patients with disease-fighting, facing difficulties, nutrition and the harmful things that explained how korunulacağının said.