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July 6, 2009
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St. Louis Looking To Tax MLB All-Star Game Roster Bonuses

Could St. Louis' Earnings Tax
Apply To All-Star Players?
Many players participating in next Tuesday’s MLB All-Star Game in St. Louis “will receive hefty bonuses from their respective teams,” and St. Louis officials “view those bonuses as fair game for the city’s earnings tax,” according to Jake Wagman of the ST. LOUIS POST-DISPATCH. But tax experts said that the city could be in the wrong, as it is “unclear if playing in the game is even a condition of receiving the bonus.” St. Louis’ 1% earnings tax “applies to all individuals who live -- or work -- in the city,” and the tax is “routinely applied on a prorated basis to visiting ballplayers and other professional athletes who stop in St. Louis.” Missouri Revenue Department Dir of Communications Ted Farnen said that All-Star events such as the Home Run Derby “will be counted as well.” St. Louis Deputy Tax Collector Tom Vollmer “doesn’t expect a challenge from the league or its players on taxing bonuses.” Vollmer said that the tax “applies to any wages earned in the city … even if it’s just for a day.” However, Univ. of Georgia associate professor Joel Maxcy, who studies sports economics, said that a player “could make a strong argument against the city’s position on taxing bonuses.” Maxcy: “They’re not being paid to play in that game explicitly. They’re given a bonus for being selected.” Wagman noted that Pittsburgh, which hosted the '06 MLB All-Star Game, has a 3% “usage fee” on visiting athletes’ salaries, but city officials ruled that the bonuses for that game were “performance incentives, not pay for actually appearing in the All-Star game” (ST. LOUIS POST-DISPATCH, 7/5).


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