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Minnesota’s jock tax to get boost from MLB All-Star Game

July 15, 2014

The debate among hardcore sports fans and the occasional and newbies that teams always want to attract is whether what we watch on the field (or arena or track) is a competition or entertainment.

Realistically, it's a combination of both. But team owners, league officials and the media outlets that broadcast the events often see them as spectacles more than sports.

They are correct on days like today. Major League Baseball's annual All-Star Game is tonight at Target Field in Minneapolis, Minnesota.

MLB 2014 All-Star Game Peanuts promotion via Major League Baseball
Bobbleheads are ubiquitous at sporting events. But in conjunction with this year's Major League Baseball All-Star Game, the hosting Minneapolis Twins, MLB and Peanuts Worldwide have gone a few steps further down the baseline to honor Charles Schulz, one of the Twin Cities' most famous sons. Ten of Schulz's legendary "Peanuts" comic strip characters have been memorialized as life-sized statues in full Twins uniforms and decorated with full baseball gear. Click the image above to read about how you can own one of the large statues for your own backyard field of dreams or smaller reproductions for your bookshelves. (The link is to a news story, not a paid advertisement.)

Sports, entertainment, all is taxable: Years ago, MLB let Fox Television fiddle with the format, specifically changing the playoff rules so that the league that wins gets to have World Series home field advantage. The idea was that more folks would watch the midsummer break's game if the outcome meant something to the players.

But even though, as Fox likes to say, the game matters, tonight's match-up between the American League and National League all-stars is not a true sporting event. It's pure entertainment.

That's why from a tax standpoint it's fitting that the game is in the Land of 10,000 Lakes. Minnesota's version of the jock tax — the tax that many states and some cities collect on athletes and others who travel there to perform — is officially a tax on nonresident entertainers.

"For purposes of this section," notes the Minnesota Department of Revenue Web page on statute section 290.9201, "'entertainer' includes, but is not limited to, a musician, singer, dancer, comedian, thespian, athlete, and public speaker."

Those folks, including the MLB players who are residents of other states but are in town to play in the game, are subject to the state's 2 percent tax on the gross compensation they receive for their performances.

That means the Minnesota treasury will have a nice payday.

There will be over $551 million worth of 2014 salary on the field, according to USA Today's sports/money blog The Fields of Green.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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