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NHLPA Wants To Sue The State Of Tennessee For Professional Privilege Tax

from Aaron Ward of TSN,

The NHL Players' Association is seeking permission to sue the state of Tennessee on behalf its membership and get reimbursed for a special tax that players must pay each time they play a game in Nashville.

Since the 2009-2010 season, the state has taxed NHL players $2,500 - with an annual cap of $7,500 - under a 'Professional Privilege Tax' each time they were on their club's playing roster for a game in Nashville.

The Players' Association believes this is unfair and possibly unconstitutional, saying a player making the league minimum would in fact lose money playing there and would be better off financially by not playing.

continued

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Comments

redxblack's avatar

This is way overdue. I’m surprised it hasn’t been contested yet.

Posted by redxblack from Akron Ohio on 11/02/13 at 12:19 AM ET

SnLO's avatar

The Players’ Association believes this is unfair and possibly unconstitutional, saying a player making the league minimum would in fact lose money playing there and would be better off financially by not playing.

Every player loses money when they play there… it’s called a tax. It’s where the government robs you of your earnings to give it to someone else that didn’t earn it to receive it. Everybody would be better off financially to not play there. Maybe the team should move to a less tax penalty location.

Posted by SnLO from the sub great-white north on 11/02/13 at 12:50 AM ET

shanetx's avatar

That’s not what he’s saying; they are insinuating a player making league minimum might not make enough per game to cover the tax.  I find that somewhat dubious.  Is the per-game salary not more than $2500 at league min?

Posted by shanetx from Floydada, Texas on 11/02/13 at 03:50 AM ET

SnLO's avatar

Is the per-game salary not more than $2500 at league min?
Posted by shanetx from Floydada, Texas on 11/02/13 at 03:50 AM ET

I think the League minimum is higher, but, being a fixed amount, when you factor in the other taxes and deductions from payroll, the league minimum may not be enough.

Posted by SnLO from the sub great-white north on 11/02/13 at 07:52 AM ET

Avatar

Its better than paying 75% of your earnings in tax.

Its kind of funny actually.  You have all of these movie stars, and sports stars lining up to cheer on bigger government and all that it entails… until that is the bill shows up at their door… then they want exemptions.

This is just the beginning.  Once one city sees what kind of money can be returned with this it is just a matter of time before you begin to see it in more cities.

Posted by gretzky_to_lemieux on 11/02/13 at 10:06 AM ET

cigar_nurse's avatar

Socialism at it’s finest. All professionals including doctors and lawyers included. No state income tax there so put it on the backs of the HAVES to pay for the HAVE NOTS. I see the NFL is exempted. BAH. Refuse to pay it . What are they going to do? Cancel the games and lose all the revenue?

Posted by cigar_nurse from Greenville South Cakalakee on 11/02/13 at 10:26 AM ET

Avatar

Keep in mind, Detroit is likely going to raise hotel and entertainment taxes precipitously in order to pay for that new stadium everyone is such a fan of, and there are a bunch of cities who have similarly gerrymanded tax-added and tax-free zones designed precisely to capture as much money from non-residents as possible.

Just to slow the proverbial roll of those affecting a holier than thou stance on the evils of targeted taxation as a means of a locality increasing revenue.  It already exists and exists broadly, just maybe not quite as nakedly as it does here.

Also, I’m fairly sure athletes already have to pay income taxes in every state they play, so all Tennessee is doing, really, is just jacking up that daily rate.

I think it stinks, but I think the current tax code generally stinks and I think it stinks intentionally.  So there’s that.

Posted by HockeyinHD on 11/02/13 at 11:06 AM ET

J.J. from Kansas's avatar

This isn’t an income tax and that’s what the problem with it is.  In every other state which has a privilege tax, that tax overlaps as an income tax. This one does not.

Hockey is actually too successful in Tennessee right now to just threaten to move the Preds, considering there are a number of other easier-to-move teams out there.  Unfortunately, it’s not big enough to warrant the NHL getting an exemption from this tax like the NFL enjoys (and which they got by being willing to move the Titans to just about any city and still make a shitload of money).

Also, this privilege tax right now is being paid by the NHL (out of money they would otherwise pay the players, so it really IS money being paid by the NHLPA).  However, players making league minimum don’t lose money to play in Tennessee because of this piece in the CBA.  The burden for paying the roughly $2M this tax annually draws from NHL players is shared among the entire NHLPA.

Posted by J.J. from Kansas on 11/02/13 at 11:21 AM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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