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Monday, November 12 • 1:00pm - 1:50pm

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This presentation addressed the concepts, impact, and implementation of the “Jock tax”. The presentation will focus on three specific areas: (1) legislations that are used for imposing this special type of income taxes; (2) a review of non-resident taxable income and its relevance to the sports industry; and (3) the different approaches adopted by various states to apply the jock tax (i.e., the duty days approach or games played approach). The “Jock tax” started in the state of Illinois as a revenge practice for Michael Jordan by imposing taxes on visiting professional athletes. There are twenty-one states throughout the United States that utilize this tax system. Professional athletes are targets for this type of tax because they are popular and rich. Apparently, each state has been granted with constitutional authority to tax athletes or any professionals who conducts business in jurisdictions within its state. Each state can also tax its residents for income taxes, even if they were working in other states. Currently, four specific states, Florida, Tennessee, Texas, and Washington, have allowed professional athletes to enjoy the benefits of no state income tax, since the jock tax are practiced all over the country. Since the enactment of jock tax, it has created an administrative nightmare for the staff of state’s revenue services. Even if states use the standard “Duty Days method” to tax athletes, on average teams and athletes would still have to file up to ten different tax return forms. The authors argue that certain professional athletes should not be subjected to this abusive form of tax practice, just because they make much money. Additional, insight regarding the pros and cons of this tax system will be further discussed.


Monday November 12, 2018 1:00pm - 1:50pm EST
Bourbon Lecture Room