§ 43-209 — Collection of tax on income of professional athletes earned in this state; separate accounting for tax revenue from professional football and baseball; definitions

Arizona § 43-209

• Jurisdiction: Arizona
• Title 43: Arizona Revised Statutes
• Ch. 2: ADMINISTRATION
• Art. 1: General Administrative Provisions

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A. The department shall adopt and enforce rules for the collection of tax under this title on the income earned for services rendered in this state by professional athletes and employees of professional sport franchise organizations.

B. On or before December 31 of each year each professional football franchise organization that is domiciled in this state and each professional baseball franchise organization that compensates individuals for services rendered at a major league baseball facility that is owned by a county stadium district pursuant to title 48, chapter 26 and that is operated by the county stadium district or the professional baseball franchise organization that occupies the facility shall provide to the department the federal taxpayer identification number, assigned pursuant to section 6109 of the internal revenue code, for each resident and nonresident employee of the organization who rendered services in this state for the organization during the calendar year. Unless due to reasonable cause and not due to wilful neglect, a professional football franchise organization or professional baseball franchise organization that fails to provide taxpayer identification numbers pursuant to this subsection shall pay a civil penalty of $5 for each such number.

C. For purposes of section 42-1116, subsection C, on or before March 31 of each year, the department shall separately account for and report to the state treasurer as a single aggregate amount the total net revenues collected during the preceding calendar year from the imposition of tax under this title on the income from all sources of:

1. Any professional football franchise organization that is domiciled in this state.

2. Resident and nonresident employees of any professional football franchise organization that is domiciled in this state. For reporting purposes under this subsection, the department shall include all income reported on joint returns, regardless of the spouse to whom it is attributable, and the income of an employee's spouse that is reported on a separate return.

D. For the purposes of section 42-1116, subsection D and subject to section 48-4238, on or before March 31 of each year through December 31, 2056, the department shall separately account for and report to the state treasurer as a single aggregate amount the total net revenues collected during the preceding calendar year from the imposition of tax under this title on the income from all sources of:

1. Any professional baseball franchise organization that is domiciled in this state.

2. Resident and nonresident employees who are members of any professional baseball franchise organization that is domiciled in this state. For reporting purposes under this subsection, the department shall include all income reported on joint returns, regardless of the spouse to whom it is attributable, and the income of an employee's spouse that is reported on a separate return.

3. Resident and nonresident employees who are members of any professional baseball franchise organization that is domiciled outside of this state for services rendered in this state at a major league baseball facility that is owned by a county stadium district pursuant to title 48, chapter 26 and that is operated by the county stadium district or the professional baseball franchise organization that occupies the facility.

E. For the purposes of this section:

1. "Member of any professional baseball franchise organization":

(a) Means an employee who is an active player, a player on the disabled list and any other person required to travel and who travels with and performs services for the professional baseball franchise organization on a regular basis.

(b) Includes coaches, managers, trainers and broadcasters.

2. "Professional baseball franchise organization" means an organization that has the right to field a team for participation in professional baseball contests scheduled by a nationwide league during a regular season held in the months of March through October each year.

3. "Professional football franchise organization" means an organization that has the right to field a team for participation in professional football contests scheduled by a nationwide league during a regular season held in the months of September through December each year.