Liability for a state's income tax can be a complex issue

Posted on: February 4, 2025 at 20:36:17 CT

Would suggest that scope of the exemption from tax created by the Georgia statute can be a complex issue depending upon the facts of a particular situation.

It strikes me there's a broad range of potential fact situtions and the outcome likely is going to depend on the particular facts.

At one extreme would be (1) the player being a Georgia resident, (2) the NIL amounts paid by a Georgia resident or entity, and (3) the "services" provided by the player are perfromed in Georgia and the payment for those servcies takes place d in Georgia. In such a case, the statute would cleasrly exempt the NIL compensaiton from Georgia Income Tax under the described Georgia statute.

The other extreme is (1) the player being a resident of state other than Georgia, (2) the party or entity making the NIL payment being a neither a Georgia resident or entity, (3) the "services" pefromed are perfromed in another state; and (4) the paynenbt is made outside of Georgia. In this case, there's a very strong argument that the Georgia exemption doesn't apply and the payment could/would be subhect to another state's income tax.