Multijurisdictional Taxes: A Tax Research and Planning Case Using Major League Baseball (MLB) Players

Abstract

This case examines the tax implications of working in multiple tax jurisdictions. Students are presented with a case that considers the allocation of taxable income for a player in the MLB based on state income tax laws. This allows students to gain a more complete understanding of the impact of state and local taxes on total individual tax burden. It also challenges students to think critically about tax planning strategies that can be implemented to minimize tax liabilities when dealing with multiple tax jurisdictions. Finally, the case provides an opportunity for an instructor to engage students in tax research at an appropriate level for the course. The case can be adapted to use in undergraduate and graduate courses for individual taxation, state and local taxation, or tax research. Student responses indicate that they find the case interesting and beneficial in improving their understanding of state tax issues.