Georgia lawmakers have introduced a bill to exempt college athletes’ NIL (Name, Image, and Likeness) earnings from state income tax, aiming to give Georgia and Georgia Tech a recruiting advantage. Senate Bill 71, filed on February 4 by State Senator Brandon Beach and four co-sponsors, is designed to help these schools compete with states like Texas, Tennessee, and Florida, which do not impose state income taxes.
Beach emphasized that eliminating state income tax on NIL earnings would provide Georgia’s major universities with an important tool in recruiting top-tier athletes. He noted that the idea did not come from university officials but rather from a conversation he had with former Alabama coach Nick Saban. Beach recounted a dinner at Lake Burton with Saban, his wife Terry, and another couple, where Saban suggested that removing the tax could help Georgia coach Kirby Smart navigate NIL challenges.
At the time of publication, representatives from Georgia and Saban had not responded to inquiries, while a Georgia Tech spokesperson declined to comment.
Currently, 41 states and Washington, D.C., impose state income tax. Georgia’s tax rate is 5.39%, slightly reduced from the previous year. The issue of how NIL earnings are taxed and how well schools educate athletes on financial matters remains a major topic in college sports. Schools also differ in how NIL contracts address tax responsibilities. For instance, a reviewed agreement from a Big Ten school included a clause allowing a third party to administer payments and withhold taxes, whereas a Big 12 school’s agreement lacked such language.
This is not the first time Georgia lawmakers have sought to assist their in-state athletic programs. In 2016, the state amended open records laws in collaboration with Smart, limiting public access to athletic department information.
Beach expressed confidence that the bill will pass, citing strong support in the legislature. Georgia’s Lieutenant Governor, Burt Jones, who oversees the state senate, played football for the Bulldogs from 2000 to 2002, further strengthening the bill’s chances. The bill is set to go to committee in the coming week, after which Beach expects it to advance to the Senate floor for debate and approval.