New bill in Georgia senate could spare NIL compensation from state income tax
Athletic programs in the University Systems of Georgia could soon get another boost when it comes to the value of it’s Name, Image, and Likeness deals. According to On3’s Pete Nakos, a state senate bill was filed on Monday that would exempt NIL compensation from the state’s income tax.
That bill has is sponsored by a quintet of Peach State senators — Brandon Beach, Greg Dolezal, Ben Watson, Carden Summers and Frank Ginn — and it would level the playing field with a few other SEC states, namely Florida, Texas, and Tennessee.
Georgia’s state income tax rate is just shy of 5.5 percent. Florida, Texas, and Tennessee have no income tax, meaning student-athletes are able to keep more of their NIL compensation in those states.
This comes a few months after Georgia Governor Brian Kemp signed an executive order paving the way for schools in Georgia to compensate student-athletes directly and fund collectives. That took place September.
“Student-athletes in the State of Georgia should compete on a level playing field and not forgo compensation available to student-athletes in other states while the settlement is pending,” Georgia’s executive order states.
Top 10
- 1
Xavier Worthy
Lofty expectations for Arch Manning
- 2
2025 CFB Win Totals
Front-runners for title revealed
- 3
'Where were you?'
Greg Brooks Jr.'s father to Brian Kelly
- 4
Johntay Cook arrested
Former Texas, Washington WR in hot water
- 5
Top 10 QBs
Mel Kiper shakes up NFL Draft rankings
Get the On3 Top 10 to your inbox every morning
By clicking "Subscribe to Newsletter", I agree to On3's Privacy Notice, Terms, and use of my personal information described therein.
Other states have passed laws to give their schools a leg up, too. Texas and Missouri have passed laws that would prevent the NCAA from looking into NIL activities. High school students in Missouri can begin getting compensated by in-state schools as soon as they sign with said in-state school.
Kirby Smart is a supporter of NIL and has used the word “sustainable” to describe Georgia’s approach to it. He also understands that using it for recruiting and using it for roster retention are two completely separate things.
“I think it’s a mistake to assume all players lead with that or that’s the primary objective,” Smart said last summer. “I think that would be an insult to high school football players and people being recruited. I don’t get to the finish line of official visits where that’s the primary objective. If it is, we’re probably not getting to that point. We’re probably not in the conversation if that’s the primary objective.
“Is that one of the key decision makers? Yes. Should it be? Yes. I’m happy these kids get the opportunity to improve their situation or make money and give back to their families. In some cases, give back to their communities.”
