NHL players to receive refunds after Pittsburgh ‘jock tax’ law deemed unconstitutional

A new ruling is going to put money back into players’ pockets.

On Thursday, the Pennsylvania Supreme Court ruled that the Pennsylvania Usage Fee, also known as The Facility Tax, is unconstitutional.

The fee, also referred to as a jock tax, was introduced in 2005. It has led to visiting athletes and entertainers performing at any of the City of Pittsburgh’s publicly funded sports stadiums, and being taxed at a rate of three percent of their income.

In short, if you were a visiting team facing the Pittsburgh Penguins, 3% of your daily earnings were taxed, on top of whatever income tax you received based on where you played (except for those no-tax states that everyone loves to discuss after Lord Stanley is handed out).

According to court documents, arguments in the case date back to October 2023. The appellees include the NHL Players’ Association and New York Islanders forward Kyle Palmieri. Also involved in the case were the Major League Baseball Players’ Association and former player Jeff Francouer, as well as the NFL Players’ Association. Scott Wilson, who played parts of four seasons with the Penguins, along with making stops with the Detroit Red Wings and Buffalo Sabres, is also listed as an appellee.

A league source confirmed that “hundreds of hundreds” of players filed as complainants and will be refunded in the near future.

The appellees filed a civil complaint against the city a few years ago, with an order “granting a motion for summary judgment filed by Appellees” in September 2022.

Justice David N. Wecht released an opinion on the matter following the final ruling:

“The courts below held that this so-called “jock tax” unconstitutionally discriminates against nonresidents in violation of the Uniformity Clause of the Pennsylvania Constitution.”

In January 2024, Pittsburgh Mayor Ed Gainey’s office appealed a Commonwealth Court ruling, arguing that the tax unfairly treated non-residents differently from those who live in the city.

“We want our residents to know that we are doing all that we can to ensure the financial strength and security of our City,” Gainey’s office said in a statement during that time. “This is why we are pleased that the Supreme Court has agreed to hear our case defending our ability to collect the so-called jock tax. We believe that this tax is constitutional and will continue to collect it as we prepare to present our arguments to Pennsylvania’s Supreme Court.” 

The Facility Tax for nonresident NHL and MLB players was only based on the number of games played within Pittsburgh – including preseason, regular season and playoff contests. Practices didn’t fall under the rule. Coaches, trainers and other non-player personnel were taxed based on the number of days worked in the city.

NFL players were taxed based on “duty days,” which included preseason, regular season, and postseason practice sessions and games.