US Senator from North Carolina Proposes Tax on Student-Athlete Scholarships | State
(The Center Square) – U.S. Senator Richard Burr introduced a bill that would require college athletes who receive compensation for their name, image or likeness (NIL) to be taxed for their athletic scholarship.
Burr, RN.C., said the NIL Scholarship Tax Act “Will protect the integrity of amateur athletics in colleges and universities” after a recent policy change.
âCollege athletes have the unique opportunity to compete for their school while receiving a quality post-secondary education,â Burr said in a statement. “The recent NCAA decision to rescind its long-standing outside compensation ban will fundamentally change the landscape of varsity athletics.”
Almost 30 states since 2019 have changed their policies to allow student-athletes to earn outside income for their NIL. The NCAA also implemented the policy in July. College athletes typically receive scholarships that pay for their tuition to enter post-secondary schools. In most states, the policy does not affect student eligibility for scholarships.
The measure would allow student-athletes to choose between receiving a tax-free scholarship for a post-secondary degree or the possibility of earning external compensation for their nil. Those who earn less than $ 20,000 from their NIL sponsorships would continue to receive their scholarship tax free. Students earning more than $ 20,000 per year would be required to include their scholarship in gross income adjusted for federal income tax.
“As one of two former scholarship athletes serving in the United States Senate, I remain concerned that the NCAA action ignores the fact that only a handful of income-generating sports financially support the majority of non-income sports. of income on college campuses, âBurr said. “Some students continue to play professionally, but the vast majority do not. The majority of student-athletes rely on their college education for their future income.”