Oklahoma's Treasury Coffer and the Hornets

[1stTimeCaller]

Surely the NBA players in town had to have helped with more income tax. We've got all these guys like LeBron that make huge salaries and OK get's their cut when they play in town.

I'd like to see abreak down of how much money OK made off the Hornets and the visiting teams this year.

[SoonerInKCMO]

Just some off the cuff cipherin'...
Salary cap - $49.5 million.
Per game that's about $604,000.
Two teams per game for $1.2 million.
35 games in OKC - $42 million.
Tax rate is, what? 7-8%?? - $3 million-ish in state income tax.
I'm sure they can get some tax guys slicker than the ones down at H&R Block to minimize that amount though.

[Beano's Fourth Chin]

Are you sure about that? Anytime someone travels to OK on business, they don't have to pay OK income tax do they?

[OUHOMER]

Are you sure about that? Anytime someone travels to OK on business, they don't have to pay OK income tax do they?


I have heard that is the rule. u work here you pay taxes.. the gov should have tax guys waiting at the airport

[Beano's Fourth Chin]

that's way harsh.

[Howzit]

I have heard that is the rule. u work here you pay taxes.. the gov should have tax guys waiting at the airport

But their income is not generated in Oklahoma. I travel to a different state regularly. I don't pay other state's income tax because my employer is not in Oklahoma. How is this different?

[Okla-homey]

Perhaps Taxman will weigh-in, but I know this, the law as its applied to professional sports is weird. Has been for a very long time. For example, despite the Sherman Anti-trust Act barring commercial monoplies, MLB got and continues to enjoy a "pass." Ditto NFL, NBA and NHL. I've read the cases, its absolutely bizarro, but there it is.

Think about it. A bunch of team owners (AKA bidness men) form an alliance and say "nobody else may start a team (company) and be part of our dealio unless we say so." Furthermore, they get to say who plays where and who get's granted "free agency." Other than those guys the "alliance" releases, you work/play where they tell you and you can't switch between "companies" (teams) unless the alliance says okay.

As we know, the NBA an NFL even get to "draft" new-guy players who may not negotiate among the teams to get the best deal for themselves possible like everyone else in America.

There's really nothing else like that in American society.

Therefore, I wouldn't be at all surprised if pro athletes get to pick a state in which they pay taxes (likely based on where their franchise cuts the checks) and that's where they pay taxes.

[OUHOMER]

But their income is not generated in Oklahoma. I travel to a different state regularly. I don't pay other state's income tax because my employer is not in Oklahoma. How is this different?

i dont think the okla tax commish cares how another state structures the tax code. I am not an expert but i know a many years ago i knew some one who lived in Ohio and was working at the Gm plant on some kinda of install and was forced or his company was force to pay okla state income tax.

[SoonerInKCMO]

http://www.fpanet.org/journal/articles/2000_issues/jfp0600-art10.cfm


A unique issue with athletes is state income tax. You may be working with an athlete who resides in Florida (a non-income tax state); however, the athlete is required to pay taxes on income earned in other states. This requires keeping track of the athlete’s season schedule and knowing which states’ estimated taxes should be paid. It also will require assisting the athlete in filing in numerous states. This is a very important part of an athlete’s finances; therefore, if you want to be in the market effectively, you either need to have in-house tax preparation or a close relationship with a CPA. A critical area on which to follow up is in which state residency will be established (where they are in the off-season or during the season) and how you go about establishing that residency (that is, driver’s license, mailing address, bank). Additionally, you need to determine whether to set up a separate corporation for endorsement income.

[SicEmBaylor]

How about instead of having a damned OK tax guy waiting for them at the airport we give them all a tax waiver, we reduce state spending, and we encourage more people to do business here in the future. Just a thought.

[SoonerInKCMO]

How about instead of having a damned OK tax guy waiting for them at the airport we give them all a tax waiver, we reduce state spending, and we encourage more people to do business here in the future. Just a thought.

Pretty much all states that have a state income tax and professional sports teams do the same thing. It's not as if Oklahoma is putting itself at a competitive disadvantage by collecting taxes from athletes.

[BoomerJack]

I recall several years ago the MLB players in Montreal and Toronto had beef with the tax structure in Canada. It was complicated by the fact that they were getting paid in US Dollars then having to pay taxes in Canadian Dollars.

I wager that the Hornets organization has danced around this as have the players.

Example: Maybe the players aren't getting paid their full salaries during the season and playoffs. It's maybe being deferred, so to speak, until the season is over.

Another: Maybe the players are saying that OKC is not their permanent home/residence or whatever to avoid Okla. income tax.

[Czar Soonerov]

How about instead of having a damned OK tax guy waiting for them at the airport we give them all a tax waiver, we reduce state spending, and we encourage more people to do business here in the future. Just a thought.

While we're at it, let's waive my taxes too. :)

[StoopTroup]

Lets get rid of sales tax and property taxes and make all Government (non-military) and tax exempt employees work for free. We'll call them Community Service Technicians. ;)

[JohnnyMack]

So when I go to another state for work, even though my company is based in Oklahoma, I'm supposed to pay taxes in each and every state I go to for work?

[SoonerInKCMO]

So when I go to another state for work, even though my company is based in Oklahoma, I'm supposed to pay taxes in each and every state I go to for work?

Looks like... yes. Mostly. Varies from state to state. Consult your tax professional. ;)

http://moneycentral.msn.com/content/Taxes/P112872.asp

[JohnnyMack]

Looks like... yes. Mostly. Varies from state to state. Consult your tax professional. ;)

http://moneycentral.msn.com/content/Taxes/P112872.asp

It says 15 days is kinda the tipping point. The only two states I come close to spending that much time in are California and Nevada. Fu*k 'em. Nevada usually takes enough of my money the old fashioned way......I give it to 'em on the blackjack tables. :D

[SoonerInKCMO]

I was glad to read that training time doesn't count because I was starting to get worried that Massachusetts would come after me for those six weeks I spent there in 1996. The interest and penalties after nine years would be a mofo. ;)

[SicEmBaylor]

While we're at it, let's waive my taxes too. :)

I'd honestly be more than happy to.