Business

Court Weighs Ohio’s Taxation of Out-of-Town Athletes

Published

11 years ago

January 14, 2015

In this Monday, Aug. 22, 2011 file photo, former Chicago Bears player Hunter Hillenmeyer speaks during a news conference held by the Chicago Concussion Coalition in Chicago as musician and recording artist Billy Corgan, right, and Chris Nowinski, second from right, chairman of the coalition, and Chicago Alderman Latasha Thomas, left, listen. (AP Photo/M. Spencer Green)

ANDREW WELSH-HUGGINS, AP Legal Affairs Writer

COLUMBUS, Ohio (AP) — An Ohio law that singles out professional athletes and entertainers for taxation even when they’re in the state just a few days a year is unconstitutional, say several sport leagues including the NBA, NFL and NHL who want the state Supreme Court to strike the law down.

At issue is an Ohio law that excludes entertainers or athletes from a ban on municipalities taxing people who perform services 12 or fewer days per year. The leagues say the law singles out professional athletes for less fair tax treatment and overlooks the fact that despite high salaries the athletes’ careers are relatively short.

An ex-NFL player, meanwhile, has sued over Cleveland’s interpretation of the law, saying the city unfairly imposes a 2 percent income tax based on games played in the city as a percentage of total games played.

Former Chicago Bears linebacker Hunter Hillenmeyer says the city should only have taxed him based on days spent in the city compared with the length of his season, which comes out to a much lower rate.

Cleveland’s system, known as the “games-played method,” treats professional athletes as if they were paid only to play in games, Stephen Kidder, an attorney representing Hillenmeyer, said in a filing with the Ohio Supreme Court, which heard arguments Wednesday.

This ignores everything else NFL players are paid to do, including mini-camps, preseason training camp, team meetings, and practice sessions, Kidder said.

Under the method most cities use, an NFL player who traveled to a city for two days during a 160-day season would be taxed on 1/80th of his income. But in Cleveland, a visiting football player is taxed just on the game, which amounts to five percent of his income based on a 20-game season (which includes exhibition games), Kidder argued.

A second former NFL player, retired Indianapolis Colts center Jeff Saturday, argues in a separate lawsuit he shouldn’t have been taxed at all by Cleveland during the 2008 season because he was injured and not in the city for the days he was taxed.

Cleveland says its interpretation of the law is based on the thing that players are hired to do: play football games.

A case Hillenmeyer uses to bolster his argument involves the late actor Paul Newman’s successful challenge of taxes he paid filming the 1973 movie “The Sting.”

California wanted to tax Newman only for the approximate month he was in California filming, but Newman won an appeal that said he should be taxed at a lower rate because his actual contract — similar to a professional athlete’s season — was 54 days, according to Kidder’s court filing on behalf of Hillenmeyer.

The Ohio Attorney General’s office argues the athlete-entertainer exception in the state tax code is constitutional.

A ruling is expected in a few months.

___

Andrew Welsh-Huggins can be reached on Twitter at https://twitter.com/awhcolumbus.

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Related Topics:NBA NFL nhl Ohio Ohio athlete taxation Ohio entertainer taxation Ohio laws Ohio taxation

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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March 17, 2026

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As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC