Current through Register Vol. 50, No. 6, March 17, 2025
PURPOSE: This rule establishes guidelines
for the employer withholding of income tax as specified in sections
143.191-143.265 and 285.230, RSMo.
(1) All nonresident professional athletic
teams shall be considered transient employers as defined in section
285.230, RSMo and shall be
required to file a financial assurance instrument pursuant to section
285.230, RSMo.
(2) Teams and Members Defined.
(A) The term professional athletic team
includes, but is not limited to, any professional baseball, basketball,
football, soccer and hockey team.
(B) Members of professional athletic teams
shall include players, managers, coaches, trainers, travelling secretaries,
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.
(3) Personal Service Income of 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.
(4) Method of
Allocation of Personal Service Income Earned by Members of Professional
Athletic Teams.
(A) The personal service
income earned by 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
member of the professional athletic team spent in Missouri.
(B) Duty days shall be defined to include the
days a 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 (4)(A) shall be multiplied by the amount
of personal service income to arrive at the amount of personal service income
allocable to Missouri.
(5) Withholding and Reporting Obligations.
(A) Any out-of-state professional athletic
team which qualifies as a transient employer as specified in section
285.230, RSMo shall be required
to withhold Missouri income taxes from wages and salaries paid to its team
members as set forth in sections 143.191-143.265, RSMo.
(B) Every out-of-state professional athletic
team required to deduct and withhold tax shall file an employer's withholding
tax return and pay the taxes withheld to the director of revenue as set forth
in sections 143.191-143.265, RSMo.
AUTHORITY:
sections 143.961 and
285.230, RSMo 1994.* Original
rule filed Oct. 30, 1989, effective Jan. 26, 1990. Emergency amendment filed
Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency
amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995.
Amended: Filed Aug. 18, 1994, effective Feb. 26,
1995.
