Washington Democrats Target College Athletes with NIL Income Tax

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Washington Democrats have often painted themselves as champions for college athletes, pushing for their rights to profit from their name, image, and likeness (NIL). But lately, it’s hard not to wonder if there’s more going on beneath the surface.

Senate Bill 6346, sometimes called the “millionaires’ tax,” puts student athletes in the crosshairs—especially non-residents—by taxing their NIL income. The move’s got folks asking if Democrats’ support for NIL rights was ever just about fairness, or if it’s really about finding new ways to pad the state’s coffers.

The Income Tax Scheme Targeting Student Athletes

Senate Bill 6346 introduces an income tax that falls heavily on student athletes, even those living outside Washington. The bill spells out that *income of a nonresident student athlete is allocated to this state if the publicity service provided by the student athlete related to such commercial use of the student athlete’s name, image, or likeness primarily occurs in Washington.*

So, any college athlete doing NIL activities in Washington could get slapped with state income taxes. It’s a pretty sweeping reach for a single state.

Broad Definition of Compensation

The bill doesn’t hold back when it comes to defining compensation. It covers wages, salaries, bonuses, and any other form of remuneration paid to employees for personal services rendered.

This wide net makes sure all NIL income gets taxed, treating student athletes less like students and more like little revenue machines. It’s a far cry from the earlier story of just giving athletes a fair shake.

Implications for Non-Resident Athletes

The bill’s impact on non-resident athletes is probably its most hot-button feature. Any college athlete from out of state who does NIL work in Washington could owe taxes there. That’s not a loophole—that’s the point. The state seems pretty eager to grab its piece of the NIL pie.

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Targeting Non-Resident Athletes

Is it fair? That’s up for debate. Non-resident athletes, who already juggle enough, might now face extra taxes just for playing a game or signing a deal in Washington.

It’s kind of at odds with the whole fairness pitch that kicked off the NIL movement, isn’t it?

The Response from the Athletic Community

As you’d expect, the athletic community hasn’t taken this quietly. Plenty of athletes and advocates are calling out the bill for singling out student athletes and undercutting the fairness and empowerment that were supposed to be at the heart of NIL rights.

There’s a growing chorus asking lawmakers to take another look at what this bill might actually mean for student athletes. Some say it just doesn’t line up with the values that started this whole NIL conversation in the first place.

Conclusion

Senate Bill 6346 has stirred up a pretty complicated debate about NIL income and taxation. Washington Democrats once called themselves advocates for college athletes’ rights, but their quick push to tax NIL income feels a bit off.

This bill uses a really broad definition of compensation. It’s also going after non-resident athletes, which just doesn’t sit right with a lot of folks.

Honestly, it makes you wonder what the real motivation is here. Lawmakers probably need to take another look at this thing and think about what it could mean for student athletes down the road.

For more detailed insights on this issue, you can read the full article on Seattle Red.

Joe Hughes
Joe Hughes is the founder of CollegeNetWorth.com, a comprehensive resource on college athletes' earnings potential in the NIL era. Combining his passion for sports with expertise in collegiate athletics, Joe provides valuable insights for athletes, fans, and institutions navigating this new landscape.

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