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Who’s Going to Win the Super Bowl? Michigan

Super_bowl Interesting Associated Press article, Some States Impose a "Jock Tax," which notes that Michigan and Detroit will be the big tax winners in Sunday’s Super Bowl:  Seahawks players will fork over $300,000 to Michigan under its 3.4% jock tax, while Detroit will collect $112,500 from Seahawks players under its 1.275% jock tax.  Washington is one of just four states — along with Texas, Tennessee and Florida — with major professional teams that don’t have an income tax, and subsequently do not impose a jock tax on nonresident athletes:

That may soon change. Rep. Chris Strow, R-Clinton, has proposed a bill to impose a surcharge on out-of-state professional players when they play in Washington state. ”We have to try and protect our athletes,” Strow said. …

Michigan’s tax is on the low end of the spectrum. California levies up to a 9.3% rate, the highest in the nation. Pennsylvania, home of the Pittsburgh Steelers, charges 3.07%. To abide by nonresident athlete tax laws, [Seahawks players] have to file forms in eight different states where [they] played this season (two exhibition, five more in the regular season and one playoff location).

For prior TaxProf Blog coverage of jock taxes, see here and here.

Update:  The Tax Foundation’s Tax Policy Blog has more here.


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