A plaque remaining from the Big Apple Night Club at West 135th Street and Seventh Avenue in Harlem.

Above, a 1934 plaque from the Big Apple Night Club at West 135th Street and Seventh Avenue in Harlem. Discarded as trash in 2006.

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Entry from January 28, 2014
Jock Tax

A player for the New York Yankees who lives in New York CIty, for example, pays New York taxes. However, when the Yankees visit Chicago to play the White Sox, that player might be liable for Illinois taxes for working in that state. The name “jock tax” refers to a tax on out-of-state players. Professional athletes often prefer to play in a place without a state income tax (such as Florida or Texas, among other states).

The term “jock tax” (as applied to out-of-state athletes) has been cited in print since at least 1984.


Wikipedia: Jock tax
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.

16 November 1974, Seattle WA) Times, “Businessmen protest city tax proposals” by Richard Zahler, pg. B14, col. 6:
ANOTHER label was applied to Chapman’s scheme by Walt Daggatt, managing general partner of the Seattle Sounders. He called the 1 percent gross-receipts tax “a jock tax on professional sports.”

5 November 1984, Boston (MA) Herald, “Hampers blasts jock tax” by Marjorie Howard, pg. 5, cols. 2-3:
A former state revenue commissioner yesterday scoffed at the Dukakis administration’s plan to crack down on out-of-state athletes for tax evasion.

Joyce L. Hampers, who worked under Gov. Edward King, said if Massachusetts starts taxing athletes who play here, other states will start taxing local athletes, who she estimates have an annual $25 million payroll.

1 August 1992, Pacific Stars and Stripes, pg. 21, cols. 1=2:
Illinois goernor signs a ‘jock tax’
United Press International
SPRINGFIELD, Ill.—Gov. Jim Edgar has a message for some out-of-state athletes who play Illinois professional teams: it doesn’t matter whether you win or lose, you’re still going to have to pay.
(...)
California and Ohio are among the states with so-called “jock taxes.”

OCLC WorldCat record
The Jock Tax : State and Local Income Taxation of Professional Athletes
Author: Elizabeth C Ekmekjian
Publisher: 1994.
Edition/Format: Article : Document Computer File : English
Publication: Seton Hall journal of sport law, Vol. 4, p. 229-252,

OCLC WorldCat record
State income taxation of nonresident professional athletes : “jock tax” started with Michael Jordan, quickly spread to non-athletes
Author: David K Hoffman
Publisher: Washington, DC : Tax Foundation, 2002.
Edition/Format: Book : English

OCLC WorldCat record
American News - COMMENTARY: THE JOCK TAX - Sports stars—Unlike, say, CEOs—Are getting nailed for nonresident taxes by the states they visit
Publisher: [New York, etc., McGraw-Hill]
Edition/Format: Article Article : English
Publication: Business week. (July 07, 2003): 40
Database: ArticleFirst

OCLC WorldCat record
Heads Up! Recent Federal and State Attempts to Address Nonresident Income Taxation Perpetuate Selective Enforcement and Unfairness of the ``Jock Tax’’
Author: S Pahuskin
Edition/Format: Article Article : English
Publication: TAX LAWYER, 64, no. 4, (2011): 961-974
Database: British Library Serials

OCLC WorldCat record
The “jock tax” : players always lose in an unfair game
Author: Justin W Taylor; Rick Laux; Schreyer Honors College.
Publisher: [University Park, Pa.] : Pennsylvania State University, 2012.
Dissertation: Thesis (B.S.)--Pennsylvania State University, 2012.
Edition/Format: Thesis/dissertation : Document : Thesis/dissertation : eBook Computer File : English

Washington (DC) Post—GovBeat
Seahawks, Broncos will pay New Jersey taxes
BY REID WILSON
January 27, 2014 at 11:00 am
Seattle Seahawks cornerback Richard Sherman can complain all he wants, on camera and off. But no amount of complaining will get him off the hook when he files his tax returns next year: The fact that the Super Bowl will be played in New Jersey means Sherman will owe the state a part of his salary.

That’s because New Jersey is one of a handful of states that levies a so-called “jock tax” — a tax on any out-of-state athlete who plays a game in the Garden State. The tax hits every member of a professional sports team’s roster, regardless of whether they actually take the field, as well as the broadcasters who call the games.

Players will be taxed at a rate of 8.97 percent of the salaries they earn for each day in the state. Bonuses for winning championships are subject to taxes too.

RushLimbaugh.com
The Jock Tax—and Other Super Bowl News
January 28, 2014
(...)
RUSH: (...) “New Jersey is one of a handful of states that levies a so-called ‘jock tax’—a tax on any out-of-state athlete who plays a game in the Garden State. The tax hits every member of a professional sports team’s roster, regardless of whether they actually take the field, as well as the broadcasters who call the games.” It affects the equipment managers; it affects everybody in the traveling party.

“Players will be taxed at a rate of 8.97% of the salaries they earn for each day in the state. Bonuses for winning championships are subject to taxes too.” Now, what they’ve calculated here is that Peyton Manning and every other member of the Broncos… Well, let’s stick with Manning because they calculated his income.  “Peyton Manning, who stands to earn $15 million next year and will make either $92,000 or $46,000 whether the Broncos win or lose, will owe New Jersey somewhere around $57,000 next year.”

Posted by Barry Popik
New York CitySports/Games • Tuesday, January 28, 2014 • Permalink