Taxation Issues for Athletes

DeLong Grant Law Partners

Direct Taxes

Definition– Levied directly on athletes

Examples– Performance income tax– Athletic property tax

Indirect Taxes

Definition– Tax imposed on performance rights– Tax on athletic property

Examples– Personal property tax– Sales tax on commission income– Value-added tax on half-time entertainment

Jock Tax

Definition– Income tax imposed on visitors who earn money

in other cities or states– Targeted are wealthy, high-profile professional

athletes Examples– Tax on earned income per state/venue– Tax on paid public appearances– Deductions for charity appearances