If this is your first time stopping by, here are some other articles to get you caught up to speed in the series on the impact state income taxes could have on NCAA recruiting.
Taking a look at the teams inside the new “wonder conference”, the conference is split down the middle for “haves” and “have nots”. The football programs for the “haves” – teams residing in states without income taxes – would owe an average of $62 in annual state income tax while the “have nots” would owe an average of $8,403.
Interestingly from a tax perspective, the AAC Conference Tournament will move in 2015 from the FedEx Forum in Memphis to the XL Center in Hartford, Connecticut. This change will subject basketball players to a week of the highest tax rates possible for AAC teams instead of a state without an income tax.
This article only discusses state income taxes. College athletes would also be subject to federal and local income taxes. Provisions in the federal tax code allow for the deduction of state and local income taxes for certain income thresholds. Given this potential deduction on federal taxes, the variance in total income taxes owed may not be as drastic between conferences and schools. However, for simplicity sake - this article solely focuses on state income taxes.
Estimated football and basketball salaries provided by CNBC's Mark Koba (@MarkKobaCNBC).
- Estimated football salary: $178,000
- Estimated basketball salary: $375,000