News Radio WOAI KTKR AM Sports
SpursReport.com

Go Back   SpursReport.com > SpursReport Fan Forums > Spurs and NBA Fan Feedback

Reply
 
LinkBack (1) Thread Tools Display Modes
  #1  
Old 07-20-13, 11:05 AM
alh1020's Avatar
SR Team Goof
 
Join Date: Jan 2006
Location: Right here
Posts: 5,113
The strange tax levied against players in Grizzlies games

Dan Feldman, Jul 19, 2013, 11:47 PM EDT

Lots of states have “jock taxes,” taxes levied on professional athletes – both home and visiting – for making an income while playing in that state. It’s a way to grab money from high-paid athletes who don’t generate much public sympathy and most of whom aren’t registered voters in that jurisdiction.

Zach Lowe of Grantland:
But the Tennessee tax is strange, according to Ron Klempner, the interim head of the NBA players’ union, and several other tax experts who have addressed the issue. Any NBA player who is on a team’s roster during any game in Memphis has to pay a flat tax bill of $2,500 for that game. (The same goes for NHL players who pop into Nashville to face the Predators.) The tax applies to a maximum of three games, so that no player pays more than $7,500 per calendar year, Klempner says. The flat rates apply to each player, regardless of his individual income level, and they also apply to Memphis players
I’m no tax expert, but at face value, $2,500 per game seems excessive, and the flat fee seems unfair. A minimum-salaried rookie will make $2,883 per day next season, so a game in Memphis costs that player more than 86 percent of his salary for that day.

I’m not totally against local governments – which, in nearly every case, provide public funding to arenas – recouping some of that invested money via taxes (though the governments could just simplify the process by no longer providing public welfare to billionaires). I’d prefer those taxes were levied on the owners who make the profits, but if the government took the money from owners, player salary would drop, and the effect would be similar.
Lowe:
Except the money doesn’t go to the state — another of Tennessee’s jock tax quirks. It goes to the operators of the Grizzlies’ arena, who happen to also own the franchise, Klempner says. The state doesn’t see a dime, at least not directly. The theory is that arena operators will use the extra cash to spruce things up, draw more celebrated acts, and spend in other ways that will ultimately bring more visitors and money to the Memphis area.

“The state is collecting this money on behalf of a private entity,” Klempner says.
Oh. Well, that doesn’t seem reasonable at all.

Link to story: The strange tax levied against players in Grizzlies games | ProBasketballTalk
__________________
Theres a band called 1023MB. They havent had any gigs yet.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #2  
Old 07-20-13, 11:12 AM
alh1020's Avatar
SR Team Goof
 
Join Date: Jan 2006
Location: Right here
Posts: 5,113

(From Wikipedia)

In the United States, the jock tax is the colloquially named income tax levied against visitors to a city or state who earn money in that jurisdiction. Since a state cannot afford to track the many individuals who do business on an itinerant basis, the ones targeted are usually very wealthy and high profile, namely professional athletes. Not only are the working schedules of famous sports players public, so are their salaries. The state can compute and collect the amount with very little investment of time and effort.

Example, after the 2000 Major League Baseball season, Alex Rodriguez signed what was then the largest contract in American sports history, a ten-year contract worth $252 million, with the Texas Rangers. The tax collecting authorities of other states were notified alongside the public, and would separately demand that Rodriguez's employer withhold the tax due from his salary and remit it to each of them. Even though the state of Texas did not have an income tax, he still had to pay the various state income taxes applied to each away game in each location. It is estimated that Rodriguez paid $520,000 a year for state income taxes outside his own state.
__________________
Theres a band called 1023MB. They havent had any gigs yet.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #3  
Old 07-22-13, 09:37 PM
LAsucksForever's Avatar
SpursReport Team Member
 
Join Date: Jul 2004
Posts: 991

If the Grizzlies and their opponents each carry 15 players on their rosters, that's approximately $1.6 million per year that is "taxed" into the pockets of the Grizzlies' owners.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #4  
Old 07-23-13, 10:30 PM
WILLTHETHRILL's Avatar
Herman Cain of the board
 
Join Date: Mar 2003
Location: Live Oak,Texas
Posts: 3,911

Bonner Tax! Because at his salary............he needs to return some of his money to someone.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Bookmarks


LinkBacks (?)
LinkBack to this Thread: http://www.spursreport.com/forums/spurs-nba-fan-feedback/120223-strange-tax-levied-against-players-grizzlies-games.html
Posted By For Type Date
San Antonio News: Local News, Video, Weather for San Antonio TX This thread Refback 07-20-13 02:34 PM

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


All times are GMT -5. The time now is 07:29 AM.


Powered by vBulletin Version 3.7.4 Copyright © 2000-2008 Jelsoft Enterprises Limited.

Content Relevant URLs by vBSEO 3.2.0