And Now A Closet Full of Shoes Will Drop

[Jedi Master Cane]

What about students creating and selling a product while in college? If a scholarship computer science student creates and sells a smartphone app is the scholarship now income? If not, what's the difference?

A lot of interesting questions in this new era.

It's a fair point. If the state of NC is going to attempt to make the argument that a revenue stream generated from a scholarship athlete in some way "taints" all of their income and instantly converts all of it into "taxable income".....well then that should extend to ANY student who is on scholarship and produces a side revenue stream derivative of their pursuit of a degree.

From a tax perspective, this is going to be a **** show.

 

[duke4heisman]

What about students creating and selling a product while in college? If a scholarship computer science student creates and sells a smartphone app is the scholarship now income? If not, what's the difference?

A lot of interesting questions in this new era.

That's a very good point.

 

[TemplarCane]

It's a fair point. If the state of NC is going to attempt to make the argument that a revenue stream generated from a scholarship athlete in some way "taints" all of their income and instantly converts all of it into "taxable income".....well then that should extend to ANY student who is on scholarship and produces a side revenue stream derivative of their pursuit of a degree.

From a tax perspective, this is going to be a **** show.

And, also from an intellectual property law perspective. An athlete may now be able to earn income from his or her likeness but the school owns the right to the school name, nickname, mascots, and logos.

 

[BS85]

no state income tax in flordia

Or Texas or Montana.

This probably won't pass and if it does, I believe it will be challenged in court. The athletes do not get income from the scholarship, therefore they can't pay tax. The money from their image, etc yeah I can see that.

It's just douchey senators grandstanding instead of actually doing their job

 

[ZuCrew]

Didn't Northwestern try this?

Years ago. No more than 5 however at THAT time the NCAA did not rule in favor of the athletes being able to monetize they're likeness. With this new ruling, things may have a different outcome.

 

[armandose23]

then he should have quit almost a decade ago bc Clemson players have been on that slush money salary since he got there.

Agree here. No way you make 3 first round picks as juniors come back for their senior szn just because. He wants to quit because he knows his hold is gonna take a tumble once the "business decision" isn't going to Clemson, SC to live in boredom just because they have a great team and amazing facilities. This can tip the scales back in Miami's favor big time.

 

[JBCanes-NC]

Except mr I am the greatest orange face wannabe dictator in the world

 

[JBCanes-NC]

I never understood the whole student athlete thing.
My nephew had 100% bright futures scholarship to UF. On top of that he went full crazy and applied to like 40 scholarships and got like 15 of them. He went online and looked for all these obscure scholarships that barely anyone applied for. On top of that he worked at some rehab hospital as an interpreter. I walked into his room and I thought he was selling weed. Mfer had a surround system 55” led. A huge gaming console and a new civic si.
His mom was a housekeeper and no way could afford any of that. Meanwhile student athletes can’t even open up a **** lemonade stand without being ineligible.

And most “student” athletes couldn’t qualify for the **** scholarship money they receive

 

[SFbayCane]

Private schools arent subsidized by state tax dollars. I think the point of the bill is that state taxpayers shouldnt be fitting the bill for an athlete making tons of money.

Thank you for that clarification. That said, again I ask the question: Why only athletes? Why not tax the music scholarship of a kid who releases a demo and makes ad revenue money on youtube? Why not tax the academic scholarship of a kid who makes money on the side tutoring? Its only the athlete who is being targeted.

 

[TheEye]

North Carolina is leading the charge on taxing tuition benefits? How ironic that this be from the heart of tobacco rd. More power to them. Have every state income tax go after free tuition. Watch what happens.

 

[CAT5Coming]

In light of CAs NCAA legislation amd the Board of Governors [NCAA] essentially voting to fully surrender rather than fight in court...

Several states, NC first among them, are now introducing legislation...

...you accept likeness money, we also tax the value of your full scholarship as income...

get ready for the accountants and W2s...

what could possibly go wrong?

You mean like ever other tax paying citizen in the United States? How will they ever figure out how to pay taxes???

 

[pacusmc]

And most “student” athletes couldn’t qualify for the **** scholarship money they receive

And most student would break at least 3 bones if they even lasted through one practice. And the only revenue they bring to the university is their tuition.

 

[Jedi Master Cane]

North Carolina is leading the charge on taxing tuition benefits? How ironic that this be from the heart of tobacco rd. More power to them. Have every state income tax go after free tuition. Watch what happens.

It's consistent with how NC handles everything. They are one of those states that tries to milk every ounce of tax revenue they can.

For example, in regards to alcoholic beverage sales....they are considered a control state. In other words alcohol companies are not allowed to sell directly to vendors/chains. Instead they have to sell all of their alcohol DIRECTLY to the state of NC, at a price THEY heavily influence. The state then takes possession of the alcohol and picks and choose how much to sell each vendor/restaurant/chain within the state. You can bet your *** they mark that up as well.

In regards to the possible state taxation of scholarship revenue, that **** show will start at the state level but probably, eventually, end up in federal court. You're going to have a hard time making an argument that the ONLY students who are subject to the tainting of scholarships as taxable revenue are STUDENT ATHLETES. Then you take that problem one level further....and no politician is going to want to attach their name to a bill that imposes that type of tax treatment to ALL students. Try telling a kid who's on a full ride to study biology that he can't take a part time job in a lab to help pay the bills without possible heavy tax implications.

So yeah, this seems destined to be a waste of time and ultimately tax dollars since lawyers will be lining up to defend these athletes. The NCAA needs to step in and help the states weigh out the ramifications of such decisions.

 

[TheOldU2002]

Thank you for that clarification. That said, again I ask the question: Why only athletes? Why not tax the music scholarship of a kid who releases a demo and makes ad revenue money on youtube? Why not tax the academic scholarship of a kid who makes money on the side tutoring? Its only the athlete who is being targeted.

I think taxing the scholarship is dumb, but seeing as these players are no longer student athletes, they could simply pay the player the scholarship money, and the player uses that money to pay his tuition, and thus his payment from the school is a tax liability.

this of course IS silly, but thats how it COULD work. you wont see these laws introduced in the non-racist states, I would guess.

 

[SFbayCane]

I think taxing the scholarship is dumb, but seeing as these players are no longer student athletes, they could simply pay the player the scholarship money, and the player uses that money to pay his tuition, and thus his payment from the school is a tax liability.

this of course IS silly, but thats how it COULD work. you wont see these laws introduced in the non-racist states, I would guess.

Why are they no longer students athletes? The NCAA set required graduation rates for college football many years ago. Schools lose scholarships if they do not meet those minimums. They are most certainly still student athletes, just as the kids in the other examples I listed are still student athletes.


You can save the race-bating comments for someone who wants to have that bull**** conversation with you. That's not me. What this is really about is Senator ****Burr is a wholly owned entity of big tobacco and likely the Tobacco Road schools. They are likely in fear of not being able to compete in the NCAA market place and are willing to deploy their government agents to protect their gravy train.

 

[Empirical Cane]

You mean like ever other tax paying citizen in the United States? How will they ever figure out how to pay taxes???

yup

 

[SpikeUM]

You have to pay tax on non monetary compensation though.

Logic says the Feds dont tax scholarships now because the athletes are "amateur" and they have no money. But if they are now accepting money and thus more akin to independent contractors, the Feds might go after them for scholarships and room and board. And if income is taxable at the Federal level, then its taxable at the State level too.

 

[TemplarCane]

Based on the text below, from the IRS website, I don’t think athletic scholarships would be taxable income because a player earned income from their likeness. The purpose of the scholarship remains the same.

Tax laws are always subject to change, and I am not a tax lawyer or accountant

Topic No. 421 Scholarships, Fellowship Grants, and Other Grants

A scholarship is generally an amount paid or allowed to a student at an educational institution for the purpose of study. A fellowship grant is generally an amount paid or allowed to an individual for the purpose of study or research. Other types of grants include need-based grants (such as Pell Grants) and Fulbright grants.

Tax-Free
If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:

• You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
• The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.

Taxable
You must include in gross income:

• Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
• Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. However, you don't need to include in gross income any amounts you receive for services that are required by the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college.

 

[Mico Jones]

Two points . One thing I would like to see would be you can't sign an endorsement deal until after your freshman year of college. That way it would keep it somewhat like it is now regarding recruiting. Yes I know bags are being dropped now. Just image giving one of these divas $100k endorsement deals right out of high school, and saying i"m going to sit this one out coach or I'm done playing after the 4 games.. You think the bowl games are bad with players sitting out it is going to get worse with all these entitlement kids

this. It’s gonna push entitlement to a new level. They will be signed with agents as well advising them. Imagine an agent advising his player to transfer

 

[NC_Canes_11]

This is an unintended consequence of trying to tear down a system that isn’t great, but works. What the NCAA needs is a real commissioner that will take on the cheating schools. I know it’ll never happen bc they are the cash cows, but that’s the only real solution here.

The government will always come for what they think is theirs. Richard Burr is worthless. He’s an incompetent, self serving idiot, that further proves we need term limits. I hope other conservatives drag him over the coals for this.