A group of powerful state Senators, led by Sen. Brandon Beach, R- Alpharetta, has introduced legislation that would exempt student-athletes in Georgia from paying state income tax on their NIL (Name Image and Likeness) compensation. They say the bill “would keep the state’s college athletic programs on an even playing field with top rivals.”
Also signing onto the bill are State Sens. Greg Dolezal, R-Cumming, Ben Watson, R-Savannah, Carden Summers, R-Cordele, and Frank Ginn, R-Danielsville.
According to Beach, Georgia’s state income tax rate is 5.49-percent, which ranks among the highest in the Southeast, and puts Georgia NIL dollars at a disadvantage compared to those in states like Florida, Texas and Tennessee, which do not have state income tax.
Pete Nakos of On3 stated in his report that this bill would help the schools in Georgia stay competitive on the recruiting trail where money is the first thing prospects talk about with coaches.
This bill would not only help UGA, but would also help Georgia Tech, Georgia Southern, Georgia State and Kennesaw State considerably in the wonderful world of NIL.
Gov. Brian Kemp is apparently on board with that philosophy and recently signed an executive order that allows postsecondary institutions to directly pay players for their NIL opportunities. Other states have taken similar actions in recent weeks and months. Such executive orders at the state level effectively provide insulation from the NCAA or conference enforcement for violating bylaws regarding the compensation of college athletes.
“It’s not just about recruiting high school players — it’s also about retention, as transfer portal legislation allows for players to leave one school and play at the next with immediate eligibility,” Georgia Coach Kirby Smart was quoted as saying during Sugar Bowl Media Days in December. “We’re in a different day and time. I would be remiss if I tried to live in this fantasy world that kids were just going to be loyal to their school.”
