While Cleveland is not the only U.S. city to impose a so-called “jock tax” on out-of-town professional athletes who compete at its venues, the Ohio Supreme Court declared its particular method of taxation unconstitutional. Unlike other municipalities, Cleveland had taxed athletes from visiting clubs based on a percentage of games played instead of the number of working days spent in its jurisdiction. In doing so, the city had been able to collect a significantly larger percentage of each athlete’s income.
With the ruling upheld, Cleveland now owes refunds to NFL players that could total close to $1 million for each year in question.
What should NFL players do?
For NFL players, it’s a waiting game. The NFL Players Association is currently working with the NFL to layout a process for helping players collect refunds from the City of Cleveland. At the moment, we at Froehling Anderson are advising players to remain vigilant — additional information should come from the NFLPA in the coming weeks.
For more on this story, visit http://www.cpapracticeadvisor.com/news/12141827/jock-tax-overturned-supreme-court-denies-appeal