Athletes Sweating Over Taxes
In case you procrastinated on finishing up Federal, state, and local income taxes and are probably starting to prepare for the payment of municipal and school property taxes, you might be happy to know that you are joined by pro athletes who have to file in multiple states and even have to comply with local taxes that may fall on them for using publicly-funded facilities. An article today highlighted some of these local “jock taxes” and even mentioned Pittsburgh’s “facility usage fee” and quoted a Pittsburgh baseball player who also weighed in on the topic two years ago in a local article.
Pittsburgh’s fee falls on “…each non-resident of Pittsburgh who uses a publicly-funded facility to engage in an athletic events or otherwise render a performance for which a non-resident of Pittsburgh earns compensation. The Facility Usage Fee is a percentage of the individual’s income attributable to such individual’s usage of the facility.” According to the 2015 budget the tax is expected to raise $4.6 million in 2015, about 0.9% of total budgeted revenue. A 2014 article on a suit filed against Cleveland’s “jock tax” mentioned that city, Pittsburgh, and six others that have a local tax on stadium usage. Pittsburgh’s facility usage fee was authorized by Act 222 of 2004–the law that also boosted the occupational privilege tax and created the payroll preparation tax for Pittsburgh only.