California Taxes

Tax Collectors Will Be Busy as All Four California NBA Teams Are in the Playoffs for the First Time

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For the first time in National Basketball Association history, all four California teams are in the playoffs at the same time – a situation that will generate a significant amount of extra tax revenue for the state and local governments.

The exact amount of additional revenue is impossible to determine, but the post-season appearances by the Sacramento Kings, Los Angeles Lakers, Los Angeles Clippers, and Golden State Warriors have several positive impacts on state and local coffers:

  • Players who reside in other states are required to pay California income tax on the amount earned here (through a complicated formula, based on “duty days”), so out-of-state players will be taxed here for every playoff game played in this state, and also for any non-game days spent in California for practices, meetings, promotional events, etc.
  • Players who reside in California will receive extra pay for the playoffs, so the state will collect more in income taxes (at a 13.3 percent rate for those with taxable income over $1 million).
  • With more games in California, local governments will collect more parking fee revenue, sales tax revenue from souvenir sales, income taxes from vendors, and gas tax money from motorists burning fuel while stuck in traffic near the arenas.
  • Visiting teams and journalists will pay additional airport landing fees, hotel taxes, sales tax on catered food, etc.

The actual amounts of taxes paid will vary dramatically based on the salaries of the players, the size of their post-season bonuses, and the number of games played in California.