Here is all you need to know about Jock Tax, also know as the ‘Micheal Jordan Tax’ and why is it called so along with its meaning
NBA fans may be aware that the Jock Tax has been in effect throughout the league for many years at this point.
What is the Jock Tax in NBA, meaning explained and taxes by state list
Some people even enigmatically link the Jock Tax to Michael Jordan, the legendary Chicago Bulls player. The explanation behind this, nevertheless, is mostly unknown. The NBA is a league that prioritises using basketball to entertain its fan base, as we all know. In any case, it conducts business as usual and looks to make money, just like any other organisation in the country.
State governments impose taxes on these organisations in order to take a piece for themselves. Through income taxes and other fees, even average folks reimburse the government for the services it provides. The Jock Tax, however, is only applicable to professional athletes.
Fans should unquestionably be intrigued by this information and interested in how it might apply. Now that that has been said, let’s look more closely at this unique tax law and how it pertains to Michael Jordan.
Was the Jock Tax invented by Michael Jordan?
It’s interesting to consider that professional athletes are subject to a tax that other wealthy individuals are not. The Jock Tax kicks in when a player travels to another state to partake in NBA games.
4) Take Stephen Curry, for example.
He paid nearly $1 million in taxes to nearly 20 US states during the 2018 NBA season.
And California alone collects hundreds of millions of dollars each year in Jock Taxes, including $233 million in 2013. pic.twitter.com/uSfyVUNVvq
— Joe Pompliano (@JoePompliano) April 17, 2023
In exchange for temporarily housing and entertaining the player, the state demands a slice of the cake. Even well-known athletes like Stephen Curry must pay taxes based on how many games they attended in different cities.
It might not be all that painful to give up a fraction of the hundreds of millions of cash that professional athletes make through their contracts. But as far as we can tell, compared to other states in the league, some places, like Canada, where the Toronto Raptors are situated, impose exceptionally high tax rates on the players.
Michael Jordan is a part of the fascinating history of the Jock Tax. Magic Johnson and the Los Angeles Lakers faced Michael Jordan and the Chicago Bulls in the 1991 NBA Finals. After the Bulls won their first championship, California clearly became enraged and tried to tax them.
Chicago responded by making the same choice, and soon after, other clubs did the same. Although players might think this harsh, the states have benefited much from the money the Jock Tax has generated. Jordan may deserve praise for contributing to the creation of an unintended tax.