Blame it on Jordan ;-)
The 1991 NBA Finals was a defining moment in professional sports. It was Michael Jordan’s first NBA Finals, the end of the “Showtime” era for the Lakers, and the beginning of the Bulls dynasty. However, at the same time, a more ominous and quietly discussed tax policy was approved by California State taxing authorities forever changing American sports.
As the story goes, soon after the celebrations, parades and excitement of the ’91 Finals, the State of California notified Michael Jordan that he would owe taxes for the days he spent in Los Angeles. In direct response to this new egregious policy, Illinois passed a bill famously known as “Michael Jordan’s Revenge” – imposing income taxes on athletes from California and any other state that imposed a tax on their residents. Many city and state governments followed suit, seizing the opportunity to reach into the pockets of visiting athletes. Today, nearly every state that hosts professional sports teams has enacted their own Jock Tax policy. Even city local taxing authorities such as Cleveland, Kansas City, Detroit and Philadelphia established similar rules independent of the state.