ATHENS — A group of Georgia politicians have introduced a bill that would keep the state’s college athletic programs on an even playing field with chief rivals.
Athletes in Georgia could be exempt from paying state income tax on their NIL compensation if a bill filed Monday by Senators Brandon Beach, Greg Dolezal, Ben Watson, Carden Summers and Frank Ginn passes.
Georgia’s state income tax rate is 5.49%, which ranks among the highest in the Southeast, and that puts Georgia NIL dollars at a disadvantage compared with those in states such as Florida, Texas and Tennessee, which do not have state income tax.
The new bill introduced in Georgia would help the schools in the Peach State stay competitive on the recruiting trail, where money is one of the first things prospects talk about with coaches.
“Guys grew up saying, I want to play in the SEC,” former Alabama coach Nick Saban said on a recent episode of The Pivot Podcast. “I heard that 20 years in recruiting. Ain’t nobody saying I want to play in the SEC now, they’re saying how much are you paying me?”
Georgia coach Kirby Smart — whose primary rival SEC schools are in the state income tax-free states of Texas, Florida and Tennessee — acknowledged the same.
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.
“We’re in a different day and time,” Smart said during Sugar Bowl media day in December. “I would be remiss if I tried to live in this fantasy world that kids were just going to be loyal to their school.”
Further, Smart pointed out, many schools rely on football success — which translates to revenue dollars — to fund other sports programs and help promote the university brand.
“Let’s be honest, the schools make a lot of money off of football programs, (and) that money is then reinvested into all kinds of other athletic programs and, in some cases, the university,” Smart said. “So the football program is the face of most universities, not all, but most universities.
“So the ability to be successful at that is helpful to all the sports teams.”
Georgia Gov. Brian Kemp is on board with that philosophy, and signed an executive order in September that allows postsecondary institutions to directly pay players for their NIL opportunities.
Smart said that, while the financial aspect is certainly a major factor, he continues to promote the education his school offers as well as the ability of his program to develop NFL players — something that will be on display with eight former Georgia players a part of the two Super Bowl teams that will meet Sunday.
“We sell and educate them on this university and how special it is and how great the opportunity the have to play at it,” Smart said. “Not everybody is going to be convicted on that and put that before their own individuals lifestyles and choices. I’ve accepted that.
“That doesn’t keep me from still selling it. It doesn’t keep me from still using it. Doesn’t keep me from having a culture of buy-in that we’re better together and the better we do together, the more all of us get accolades, and that’s what we want to push.”
But now money factors heavily into a program competing for top players who have other options, and recruits and their advisers are sharp enough to take into consideration how their finances will be affected by state income tax.
While some people might point to the spoils that some of the more high-profile athletes appear to enjoy — such as former UGA quarterback Carson Beck, who recently transferred to Miami and drew a great deal of attention for purchasing a Lamborghini SUV last season — Smart said in November that such lavish spending is more of an exception.
“For many of these players the money they’re making is more than what their parents have ever made, (and) that’s why NIL was so important, as many student-athletes are not only changing their lives, but also their families,” Smart said on the SEC coaches’ teleconference.
“With how much families typically do for their children to be in the position they’re in to play at Georgia, it’s incredible that they can help them financially.”
Here’s a look at the state income tax in the SEC states, along with that of the programs that played in this year’s College Football Playoff Championship game.
SEC states income tax
(2024, marginal, Per taxfoundation.org)
Alabama 5.00
Arkansas 4.40
Florida None
Georgia 5.49
Kentucky 4.00
Louisiana 4.25
Mississippi 4.70
Missouri 4.80
Oklahoma 4.75
South Carolina 6.40
Tennessee None
Texas None
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