State and local taxation of nonresident athletes

State and local taxation can be considerably frustrating for taxpayers who work in multiple jurisdictions. Each of the 50 states, as well as the District of Columbia, has its own tax system, and each state can authorize its local government units, counties, municipalities, townships, and special districts, to assess and collect taxes. Although multistate businesses have always had to cope with this complexity, many state and local taxing authorities have begun to aggressively pursue nonresident individuals who work in their jurisdictions. The issues facing these individual taxpayers are exemplified by professional athletes. The treatment of professional athletes under the diverse state and local tax laws and the efforts that have been made to achieve uniformity are examined.