Recruiting College Athletes with Tax

Eversheds Sutherland Partner Jonathan Feldman is quoted in this Tax Notes State article that examines how states are considering using income tax exemptions as a tool to lure college athletes to their schools.

In the article, Jonathan discusses Georgia’s proposed bill to exempt college athletes’ NIL income from state income tax. He mentions that he supports the bill’s intent to level the playing field with neighboring states like Florida and Tennessee, which do not impose personal income tax.

In addition, he questions the fairness of exempting college athletes while professional athletes remain taxable. He also highlights the bill’s unconventional legislative path.

“Procedurally, any legislation impacting state tax collections should arise in the House, which this bill did not. Article III, Section V, Paragraph II of the Georgia Constitution states that ‘All bills for raising revenue, or appropriating money, shall originate in the House of Representatives.”

He also pointed out that Georgia may not have an income tax for much longer. “The whole idea may be moot if Georgia moves forward with eliminating the personal income tax, which several legislators and at least one leading gubernatorial candidate want to do.”

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