This paper examines the history and current effects of nonresident income taxes that states impose. Also known as “jock taxes” these taxes primarily effect high income individuals such as professional athletes. After diving into the history of nonresident taxation and current use, I will examine a real life example of the effects that state and local taxes can have on a player in the National Basketball Association. By comparing two teams in states that offer vastly different tax treatments, you will be able to see the effect that jock taxes can have on a player’s decisions and the financial consequences of those decisions. Finally, a brief analysis of the NBA’s six divisions will be provided in order to determine what divisions are the most and least advantageous to play in from a tax perspective.B.S. (Bachelor of Science
