Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule clarifies the taxation of income
of nonresident members of professional athletic teams under existing Missouri
statutes.
(1) Teams and
Nonresident Members Defined.
(A) The term
professional athletic team includes, but is not limited to, any professional
baseball, basketball, football, soccer and hockey team.
(B) Nonresident members of professional
athletic teams shall include players on the disabled list (if they are in
uniform on the day of the game at the site of the game) and any others
travelling with and performing services on behalf of a professional athletic
team.
(2) Personal
Service Income of Nonresident Members of Professional Athletic Teams Defined.
(A) All nonresident members of professional
athletic teams shall be taxed on that portion of their personal service income
allocable to Missouri.
(B) Personal
service income shall include exhibition and regular playing season salaries and
wages, guaranteed payments, strike benefits, deferred payments, severance pay,
bonuses paid for playing in championship, playoff or bowl-type games and any
other type of compensation paid to the nonresident member of a professional
athletic team in that capacity.
(3) Method of Allocation of Personal Service
Income Earned by Nonresident Members of Professional Athletic Teams.
(A) The personal service income earned by
nonresident members of professional athletic teams allocable to Missouri shall
be determined by a fraction, the denominator of which shall be the total number
of duty days in the tax year of the athlete (including the sum of days spent at
training camps, all postseason games and travel days) and the numerator of
which shall be the number of duty days in the tax year which the nonresident
member of the professional athletic team spent in Missouri.
(B) Duty days shall be defined to include the
days a nonresident member of a professional athletic team serves in that
capacity after the commencement of team activities and begins with the first
day s/he reports to the professional athletic team.
(C) The allocation fraction in subsection
(3)(A) shall be multiplied by the amount of personal service income to arrive
at the amount of personal service income allocable to Missouri.
(4) Other Income Defined. All
other income earned in Missouri by nonresident members of professional athletic
teams in any other capacity shall be included in Missouri adjusted gross income
as provided in Chapter 143, RSMo.
(5) Reporting Requirements.
(A) An income tax return shall be filed and
the tax paid to the director of revenue as prescribed in sections
143.481-143.511, RSMo.
(B)
Nonresident members of professional athletic teams may also be required to make
declaration of estimated tax payments on a quarterly basis as set forth in
sections 143.521-143.541, RSMo.
*Original authority: 143.961, RSMo
1972.
