This is a tax on athletes who play in different cities and states. Did you know this first started in 1991 after California started taxing the earnings of Chicago Bulls players? It was in the 1991 NBA Finals when the LA Lakers played the Chicago Bulls in the Finals that year (which the Bulls won in 5 games). Illinois retaliated and soon nearly every state added their own version of this tax because they love money!
Really? They got beat at Home and the State's Response was to Punish their pockets... Did they not know that other States could do the same thing? This Petty move generated to California in 2013 over $200 Million in Income Tax from athletes. It is estimated that almost 45% of athletes salaries are paid to taxing authorities.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.