5986-S AMS TOM CARL 054

SSB 5986 - S AMD TO S AMD (S-6162.2) 359

   By    Senator Tom

   On page 6, after line 15, insert the following:

   "NEW SECTION. Sec. 3. A new section is added to chapter 82.02 RCW to read as follows:

   (1) A tax equal to ten percent is imposed on the adjusted gross income of a professional athlete derived from Washington sources in compensation for professional athletic labor or services.

   (2) "Professional athlete" means:

   (a) A resident or nonresident athlete who renders labor or services to a professional athletic team that plays in a sports facility financed with ten percent or more public funds; and

   (b) A resident or nonresident athlete who has a gross annual income that is ten times the first-year base salary of a public school teacher in Washington state.

   (3) "Adjusted gross income" means adjusted gross income as determined under the United States internal revenue code of 1986 and amendments thereto, as existing and in effect on January 1, 2007.

   (4) A resident professional athlete is allowed a credit against the tax imposed under this act for the amount of any income tax imposed by another state or foreign country, or political subdivision of the state or foreign country, on income taxed under this act.

   (5) The tax on a nonresident professional athlete is determined by using a fraction in which the denominator contains the total number of days in which the individual is under a duty to perform for the professional athletic employer, and the numerator is the total number of those days spent in Washington.

   (6) The athletic public facilities account is created in the state treasury. All receipts from the tax imposed under this section shall be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for the support of public sports facilities.

   (7) No taxes other than the income tax collected under this section may be used to fund, finance, operate, or maintain a public stadium or sports facility."

   Renumber the sections consecutively and correct any internal references accordingly.

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EFFECT: A tax equal to ten percent is imposed on the adjusted gross income of a professional athlete derived from Washington sources in compensation for professional athletic labor or services.