Sunday, April 28, 2013

Which Sports Team Is Less "Taxing" for Free Agents? - Accountingweb.com

By Teresa Ambord

  • Texas: the Dallas Cowboys and the Houston Texans. 
  • Washington: the Seattle Seahawks. 
  • Florida: the Dolphins, the Buccaneers, and the Jaguars, 
  • Tennessee: the Titans. Note: Tennessee does have state income tax, but it also has what's known as a "privilege tax," which is a flat rate of $2,500 per game charged to professional athletes who play in Tennessee (regardless of income, up to three games for a maximum of $7,500 per year). NFL players, however, aren't charged this privilege tax on NFL income, whether they're Tennessee residents or visiting teams. 
So as more and more free agents strike deals, will the teams in Florida, Tennessee, Texas, and Washington have an automatic advantage based on no state income tax? It's hard to say because again, there are many facets to the decision. CPA Robert A. Raiola – who heads the Sports & Entertainment Group for the New Jersey–based accounting firm of Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC – says yes, a state's income tax situation may now weigh into the decision when a free agent looks for a new team. 
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