220 Taxation of Nonresident Members of

Professional Athletic Teams 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. AUTHORITY: section 143.961, RSMo 1994.* Original rule filed Oct. 30, 1989, effective Jan. 26, 1990. *Original authority: 143.961, RSMo 1972.