The strange tax levied against players in Grizzlies games

The strange tax levied against players in Grizzlies games

Postby Basketball Fan on Sat Jul 20, 2013 11:24 am

http://probasketballtalk.nbcsports.com/ ... ies-games/

The strange tax levied against players in Grizzlies games

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.
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Re: The strange tax levied against players in Grizzlies games

Postby LTLakerFan on Sat Jul 20, 2013 10:31 pm

Yikes! Sounds more like a scam than a tax. Goes to the operators of the Grizzlies' arena. :man3:
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Re: The strange tax levied against players in Grizzlies games

Postby Basketball Fan on Fri Mar 28, 2014 9:54 am

http://www.bizjournals.com/memphis/blog ... k-tax.html

Lawmakers reach compromise on 'jock tax'

Tennessee lawmakers are set to vote this week on a compromise that would end the state's so-called "jock tax," a special tax on some professional athletes who play in Tennessee.
The tax, which applies to NHL and NBA players, charges athletes, from both home and away teams, $2,500 when they play in the state. The tax is applied a maximum of three times a year, so an athlete can be charged as much as $7,500 annually.
An effort to reform the tax last year stalled in the Legislature. Now, WPLN Nashville Public Radio reports that a compromise has been reached that would end the tax on NHL players immediately. NBA players would play another two seasons before the tax is repealed.
While the state collects the taxes, the proceeds are funneled back to the Nashville Predators and Memphs Grizzlies, to the tune of about $3.5 million a year.
The bill is expected to be heard by the state House and Senate finance committees this week.
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Re: The strange tax levied against players in Grizzlies games

Postby therealdeal on Fri Mar 28, 2014 9:57 am

:man10:

Wow. This would infuriate me as a player of another team playing in Memphis. Well I'd still be pretty mad if I played in Memphis too. :man10:
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Re: The strange tax levied against players in Grizzlies games

Postby Rooscooter on Fri Mar 28, 2014 3:04 pm

This should infuriate anyone. Where is there "Equal Protections" in this? Just because you have money you get to be taxed in a different manner than someone who doesn't have as much..... The same people that support this are also the one that drive around with "Equality" bumper stickers on their Prius's.....
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Re: The strange tax levied against players in Grizzlies games

Postby trodgers on Fri Mar 28, 2014 5:32 pm

Roo: you just violated the "making sense while posting" statute. Please email me $2,500.
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Re: The strange tax levied against players in Grizzlies games

Postby Rooscooter on Fri Mar 28, 2014 5:42 pm

trodgers wrote:Roo: you just violated the "making sense while posting" statute. Please email me $2,500.


Sorry.... you take Paypal?

I'll go back to copying Puffy..... :man12:
"If the past sits in judgment on the present, the future will be lost." Winston Churchill

“The prospect of domination of the nation's scholars by Federal employment, project allocations, and the power of money is ever present - and is gravely to be regarded." Dwight Eisenhower

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Re: The strange tax levied against players in Grizzlies games

Postby V.V.V.V.V. on Fri Mar 28, 2014 10:17 pm

Just a scam generated by the arena owners, who probably aren't hurting for money.
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