"New York Islanders forward Kyle Palmieri was among those listed as an appellee in a case that reached the Pennsylvania Supreme Court - and ultimately toppled Pittsburgh's so-called "jock tax." On Thursday, the state's highest court ruled the tax unconstitutional, ending nearly two decades of a policy that funneled millions of dollars annually from visiting athletes and entertainers into city coffers."
"The tax, first imposed in 2005, required non-Pittsburgh residents to pay a 3% levy on income earned while performing or competing at publicly funded venues, including Acrisure Stadium, PPG Paints Arena, and PNC Park. Resident athletes, however, were not taxed at the same rate. In 2019, the unions representing NHL, NFL, and MLB players filed suit in Allegheny County Common Pleas Court, arguing the measure unfairly discriminated against nonresidents."
"In a 14-page opinion, Justice David Wecht wrote that Pittsburgh failed to provide "concrete reasons" to justify taxing nonresident athletes and entertainers differently than city residents, making the levy a clear violation of the state's Uniformity Clause. The ruling is a significant financial blow for Pittsburgh, which had relied on the so-called "jock tax" for steady revenue. Without it, city officials will need to identify new ways to offset the millions previously collected each year."
The Pennsylvania Supreme Court ruled the PA Usage Fee unconstitutional, nullifying Pittsburgh's long-standing 3% levy on income earned by nonresidents at publicly funded venues. The levy, imposed in 2005, applied to visiting athletes and entertainers while city residents were not taxed at the same rate. Players' unions for the NHL, NFL and MLB challenged the measure as discriminatory and named individual athletes, including Kyle Palmieri, as appellees. Justice David Wecht found Pittsburgh offered no concrete justification for disparate taxation, holding the levy violated the state's Uniformity Clause. The decision removes a steady revenue stream and forces officials to find alternative funding.
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