Current through Register Vol. 50, No. 3, March 20, 2024
A. Definitions
Nonresident-any person not domiciled,
residing in, or having a permanent place of abode in Louisiana.
Professional Athletic Team-a member team of
a professional sports association or league.
Team Member-shall include those employees of
a professional athletic team who are active players, players on the disabled
list, and any other persons required to travel and who travels with and perform
services on behalf of a professional athletic team on a regular basis. This
definition includes, but is not limited to, coaches, managers, and
trainers.
B. Withholding
Requirement for Nonresident Team Members
1.
Professional Athletic Teams Not Domiciled in Louisiana
a. Any professional athletic team that is not
domiciled in Louisiana and that pays compensation to a nonresident individual
for services rendered to the team within Louisiana shall be deemed to be an
employer making payment of wages and shall be required to withhold Louisiana
individual income tax from that portion of the compensation for services
rendered to the team attributable to duty days spent in Louisiana, as defined
in LAC 61:I.1304.I , for each game played in Louisiana.
b. This Section does not alter the
professional athletic team's withholding requirements for team members who are
residents of Louisiana. The withholding for these team members must be as
provided for in
R.S.
47:111.
2. Professional Athletic Teams with a
Louisiana Domicile. Professional athletic teams that are domiciled in Louisiana
must withhold for all team members as provided for in
R.S.
47:111.
3. This Section does not alter any
professional athletic team member's requirement to file the income tax schedule
required under LAC 61:I.1305.
C. Rate of Withholding. Effective on or after
January 1, 2022, the withholding tax rate under this Section shall be 4.25
percent of the compensation attributable to "duty days" spent in
Louisiana.
D. Due Date of
Withholding Return and Payment. A withholding payment must be submitted for
each game played in Louisiana. The payment must be submitted on or before the
last day of the month following the month in which the game was played. A
withholding return must be submitted for each quarter in which a game was
played in Louisiana to reconcile all payments made within that quarter. The
withholding return must be submitted quarterly on or before the last day of the
month following the quarter in which the game was played.
E. Account Numbers
1. Each professional athletic team not
domiciled in Louisiana will be issued an identification number by the
department.
2. The professional
athletic team filing the withholding return must be clearly identified by name,
address and Louisiana revenue account identification number. The team's federal
employer identification number will not be accepted as a substitute. The
withholding return will not be considered complete unless the team's Louisiana
revenue account identification number is on the return.
1. All professional athletic teams that pay
compensation to a nonresident individual for services rendered to the team
within Louisiana must submit an annual withholding reconciliation schedule that
includes a list of all team members who received Louisiana source income during
the year. The list must include the following information:
a. the name, Social Security number, and
permanent physical address of all team members regardless of residency,
and
b. for each nonresident team
member:
i. the total number of duty days spent
with the team during the taxable year;
ii. the number of duty days spent in
Louisiana;
iii. the total amount of
compensation for services rendered to the team;
iv. the amount of compensation for services
rendered to the team in Louisiana; and
v. the total amount deducted and withheld
under this Section.
2. The annual reconciliation schedule is due
on or before the first business day following February 27 of each year for the
preceding calendar year. The secretary may grant a reasonable extension of
time, not exceeding 30 days for the filing of the annual reconciliation
schedule. The annual reconciliation schedule is not considered to be remitted
until it is complete.
3. The
permanent address listed on the annual reconciliation schedule will be presumed
to be the residence of the team member for purposes of administering the Sports
Facility Assistance Fund.
G. Penalty for Failure to Timely Remit
Schedules and Payments
1. The following
penalties will be imposed for failure to timely remit these returns, schedules,
and payments.
a. In the case of failure to
timely remit any return or schedule required by this Section, the penalty shall
be $500 for the first such failure, $1,000 for the second such failure within
the three-year period beginning on the due date of the first delinquent return
or schedule, and $2,500 for each subsequent failure within the three-year
period beginning on the due date of the first delinquent return or
schedule.
b. In the case of failure
to timely remit any payment required by this Section, the penalty shall be 5
percent of the total payment due if the delinquency is for not more than 30
days, with an additional 5 percent for each additional 30 days or fraction
thereof during which the delinquency continues, not to exceed 50 percent of the
amount due.
AUTHORITY NOTE:
Adopted in accordance with
R.S.
39:100.1,
R.S.
47:164(D),
R.S.
47:295,
R.S.
47:1511, R.S. 47: 114 and
R.S.
47:1602.1.
