AR Gov. Huckabee Sanders signs bill into law exempting NIL dollars from state income taxes

[Eurocat]

As states across the country drafted bills to exempt NIL dollars from state income tax, one is now signed into law. Arkansas Gov. Sarah Huckabee Sanders signed the transformative bill Friday.

Under the law – which amended the Arkansas Student-Athlete Publicity Rights Act – funds related to NIL or revenue-sharing directly from a university will be exempt from state income tax. Additionally, the bill states financial information related to payments to athletes will be confidential and not subject to the Freedom of Information Act.

“Income received by a student-athlete from an institution of higher education as compensation for the use of his or her name, image, or likeness or as a percentage of institutional athletic revenue permitted by the institution of higher education’s governing athletic association or conference under this subchapter is exempt from state income tax,” the law states.

Arkansas was one of a handful of states with bills looking to exempt NIL dollars from income tax. Alabama, Louisiana and Georgia were among those in the South to do so, and Illinois saw a similar bill emerge in its state legislature. Arkansas is believed to be the first state to sign such a bill into law.

Arkansas Governor signs transformative NIL bill into law

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www.on3.com

 

[FeralFelidae]

I don't like the special treatment, but this might be a move to level the recruiting playing field with states like Texas, Florida, and Tennessee that have no state income tax for anybody.

 

[Darren72]

Wait till the athletes learn about the Social Security self-employment tax!

 

[TheC]

As states across the country drafted bills to exempt NIL dollars from state income tax, one is now signed into law. Arkansas Gov. Sarah Huckabee Sanders signed the transformative bill Friday.

Under the law – which amended the Arkansas Student-Athlete Publicity Rights Act – funds related to NIL or revenue-sharing directly from a university will be exempt from state income tax. Additionally, the bill states financial information related to payments to athletes will be confidential and not subject to the Freedom of Information Act.

“Income received by a student-athlete from an institution of higher education as compensation for the use of his or her name, image, or likeness or as a percentage of institutional athletic revenue permitted by the institution of higher education’s governing athletic association or conference under this subchapter is exempt from state income tax,” the law states.

Arkansas was one of a handful of states with bills looking to exempt NIL dollars from income tax. Alabama, Louisiana and Georgia were among those in the South to do so, and Illinois saw a similar bill emerge in its state legislature. Arkansas is believed to be the first state to sign such a bill into law.

Arkansas Governor signs transformative NIL bill into law

.

www.on3.com

What is the rationale for this? If a teenage kid makes above a certain limit bussing tables, they pay tax. Why is a college athlete making hundreds of thousands of dollars exempt?

 

[No Chores]

What is the rationale for this? If a teenage kid makes above a certain limit bussing tables, they pay tax. Why is a college athlete making hundreds of thousands of dollars exempt?

Excellent question.

 

[FeralFelidae]

What is the rationale for this? If a teenage kid makes above a certain limit bussing tables, they pay tax. Why is a college athlete making hundreds of thousands of dollars exempt?

As I conjecture in my previous post, I think it might be to level the playing field in recruiting since some major SEC states (Texas, Florida, Tennessee) have no state income tax.

From my perspective as a taxpayer, I don't like the special treatment and I think it's a slap in the face to the rest of the taxpayers in that state. But some of them must support it since it's in service to ol' alma mater.

 

[No Chores]

As I conjecture in my previous post, I think it might be to level the playing field in recruiting since some major SEC states (Texas, Florida, Tennessee) have no state income tax.

From my perspective as a taxpayer, I don't like the special treatment and I think it's a slap in the face to the rest of the taxpayers in that state. But some of them must support it since it's in service to ol' alma mater.

Inconceivable to me that you are not correct on all counts.

 

[Purple Pile Driver]

What is the rationale for this? If a teenage kid makes above a certain limit bussing tables, they pay tax. Why is a college athlete making hundreds of thousands of dollars exempt?

So they don’t transfer to a school that has no state income tax.

 

[CatManTrue]

As states across the country drafted bills to exempt NIL dollars from state income tax, one is now signed into law. Arkansas Gov. Sarah Huckabee Sanders signed the transformative bill Friday.

Under the law – which amended the Arkansas Student-Athlete Publicity Rights Act – funds related to NIL or revenue-sharing directly from a university will be exempt from state income tax. Additionally, the bill states financial information related to payments to athletes will be confidential and not subject to the Freedom of Information Act.

“Income received by a student-athlete from an institution of higher education as compensation for the use of his or her name, image, or likeness or as a percentage of institutional athletic revenue permitted by the institution of higher education’s governing athletic association or conference under this subchapter is exempt from state income tax,” the law states.

Arkansas was one of a handful of states with bills looking to exempt NIL dollars from income tax. Alabama, Louisiana and Georgia were among those in the South to do so, and Illinois saw a similar bill emerge in its state legislature. Arkansas is believed to be the first state to sign such a bill into law.

Arkansas Governor signs transformative NIL bill into law

.

www.on3.com

More evidence that our tax code is too damn complicated.

I also wonder when the last time NU signed a player from Arkansas. Drawing a blank. Perhaps @CappyNU or @mshelton33 or @Styre knows?

 

[TheC]

So they don’t transfer to a school that has no state income tax.

If I were a taxpayer in Arkansas (unless I was a HUUUUGE Razorback fan), I'd be pretty pissed about this.

 

[Purple Pile Driver]

If I were a taxpayer in Arkansas (unless I was a HUUUUGE Razorback fan), I'd be pretty pissed about this.

She’ll get a lot more votes doing this than she would have fighting it.

 

[TheC]

She’ll get a lot more votes doing this than she would have fighting it.

Well... Arkansas is that shining beacon for the rest of the nation

 

[Purple Pile Driver]

Well... Arkansas is that shining beacon for the rest of the nation

The tax revenue lost from income generated from NIL in Arkansas is a pimple on a tough guys butt for even the state of Arkansas revenue. Not a battle you want fight if you are in elected office.

 

[Eurocat]

If I were a taxpayer in Arkansas (unless I was a HUUUUGE Razorback fan), I'd be pretty pissed about this.

Nah. Huge Razorback fan? That describes 97 percent of the population! "We have to do it in order to remain competitive". Issue solved.

The other three percent root for Butch Jones (remember him?) and Arkansas State! Go Red Wolves!

 

[mshelton33]

More evidence that our tax code is too damn complicated.

I also wonder when the last time NU signed a player from Arkansas. Drawing a blank. Perhaps @CappyNU or @mshelton33 or @Styre knows?

Daniel Anderson in the Class of 2025 and Joseph Himon II in the Class of 2022.

 

[Sheffielder]

What is the rationale for this?

The answer to this should be obvious.

Clearly, we have state legislatures where college sports are important enough that voters would like to see elected officials give their in-state programs a competitive advantage over those in other states. We already saw this as the floodgates opened for NIL.

I have no doubt that Sanders and govs in other states have done a study to conclude what a relatively insignificant blip this is on lost revenue but how the headline raises Sanders' approval rating amongst neckbeard Hogs fans who wear sunglasses on top of their baseball caps.

 

[CatManTrue]

Daniel Anderson in the Class of 2025 and Joseph Himon II in the Class of 2022.

Didn’t realize Himon II is from Arkansas! Thanks

 

[docrugby1]

We just bought a condo in Hubbard Woods one month ago. Cook County just sent us a new assessment increasing evaluation by 100% . I am not sure how you guys live with this. New Trier may be a great HS but it probably reduces your chances of getting into an elite school.
My son got a similar notice and he estimates his tax bill will now exceed his mortgage payment

 

[Purple Pile Driver]

We just bought a condo in Hubbard Woods one month ago. Cook County just sent us a new assessment increasing evaluation by 100% . I am not sure how you guys live with this. New Trier may be a great HS but it probably reduces your chances of getting into an elite school.
My son got a similar notice and he estimates his tax bill will now exceed his mortgage payment

I guess we won’t need to tax NIL earnings for our athletes then.

 

[stpaulcat]

Huckabee Sanders is confused and conflicted person. Perhaps the etymology of Huckabee provides insight : "The surname originated as a habitational name, derived from Huccaby in Devon, England; this place name is derived from two Old English elements: the first, woh, meaning "crooked"; the second, byge, meaning "river bend"."

 

[Eurocat]

I am not a GOP defender by any means (nor opponent, you will be hard pressed to find someone more centrist than me) but I think "crooked" in that sense does not mean criminal (a criminal, a crook) but means twisty and turnery. "My son's penmanship was all crazy and crooked until I taught him proper penmanship" and/or "if you want to reach my house in the countryside please drive carefully in autumn, leaves are all over the place and the road is crooked" for example.

 

[Purple Pile Driver]

Huckabee Sanders is confused and conflicted person. Perhaps the etymology of Huckabee provides insight : "The surname originated as a habitational name, derived from Huccaby in Devon, England; this place name is derived from two Old English elements: the first, woh, meaning "crooked"; the second, byge, meaning "river bend"."

Knows exactly what she is doing. It’s politics, she is garnering future votes.

 

[DaCat]

She’ll get a lot more votes doing this than she would have fighting it.

Knows exactly what she is doing. It’s politics, she is garnering future votes.

And hoping the voters forget about podium-gate. Woooooooo. Pig. Sooie!

 

[csh2088]

If this tax exempt status for NIL becomes a thing in other states than BYU and Utah are in trouble because as a resident of Utah I can tell you this state taxes us for EVERYTHING.