Arkansas makes NIL money tax free

[Crimson1967]

Arkansas Passes Legislation to Allow NIL Payments to Go Tax-Free

Higher education institutions in Arkansas just received game-changing news regarding the student-athlete recruitment business. In a successful attempt to balanc

www.si.com

I can think of a few other occupations that deserve tax free status more than college athletes.

Be sure to comment before this gets moved to the political board.

 

[BamaNation]

There should be a requirement that to get any NIL money you have to take a personal finance course each semester that NIL money is "earned". Giving an 18 yr old $1MM to $3MM tax free. What could go wrong? Should have been tax free up to the cost of attendance for the university not covered by tuition scholarship. That would be fine. Everything else? You gotta pay The Man like all of us non-millionaire salary working folks.

The tail is truly wagging the pig.

 

[Tubafore]

Many people other than college athletes make money off their NIL. Arkansas's state residents' net worth is gonna shoot through the roof with nothing to show for it because every (for hyperbole only) celebrity spokesperson will buy a little patch of land, put a mailbox on it, and claim that as their home residence.

 

[mrusso]

I fear Alabama (and others) will follow along eventually. I'm working to get my employer to convert me to an NIL contract so I too can benefit from the tax break.

 

[some_al_fan]

Alabama has a similar bill under consideration: https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB240-int.pdf

 

[Cruloc]

Clown world

Absolute buffoonery

 

[mdb-tpet]

What a dumb race-to-the-bottom world we are living in. This is absurd. People getting 6 and 7 figure checks simply do not need to get tax breaks, or we should just quit taking taxes altogether and enjoy becoming West Somalia.

 

[Cruloc]

I doubt my employer will let me reclassify my position as NIL and thereby have no withholding on my income.

My son is in college, small scholarship, no NIL.....but these guys get a full ride scholarship and NIL payouts that will now have no tax.

We will soon have Dwayne Elizondo Mountain Dew Herbert Camacho running things, if we don't already.

 

[Tubafore]

Alabama has a similar bill under consideration: https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/HB240-int.pdf

I see this only applies to student athletes. I guess that kills my loophole of having a small plot of land with a mailbox for tax purposes.

 

[OconeeTide]

How in the world is that fair? Work my whole life getting taxed, yet these kids just get handed millions of dollars tax free?