Living in the Minnesota media sphere of coverage I have heard that Al Franken (D) candidate for the US Senate failed to pay $70,000, in back taxes. My first thought was he is a crook and should be punished. This week he stated that it was an accounting error and would be corrected. It seems that Al Franken failed to pay his "Jock Tax" in several states. I looked up the term "Jock Tax" and learned that it has been around for many years but made news when the Chicago Bulls beat the Los Angles Lakers for the NBA Championship in 1991. California decided to tax Michael Jordan, one of the highest paid players, for the time he played in California. Surprisingly Illinois levied a jock tax of their own and applied it to athletics playing in the state from other states that levied a "Jock Tax". Since then other state and cities have instituted a "Jock Tax".

With the "Jock Tax" any person who earns a portion of his/her income in another state must pay tax on that income. It does not pay for states to try to collect the tax from most people but it does pay to go after the athletes and entertainers. This means that some people have to file income tax returns with several states and cities. These are also easy for the tax man to check on because the schedules are posted on the internet. In Al Franken case he performed in different states and failed to file a tax return. One of the problems is each state has a different definition of what constitutes working in the state. New York State says that it is 15 days or more while other count from day one. You accountant who has been handling you work from the beginning may not be able to handle all the tax laws from every state and city across the nation. A small community may establish an income tax just to catch the high paid athletics. The city builds a multi complex that will house concerts as well as a baseball team, football team and basketball team but it is outside the city limits in a small suburb with no other business. They could enact an income tax that you might not know about and figure that since the large city has no income tax you don't owe tax to them.

With governments needing more money and not wanting to cut programs they will start to look for new ways to collect taxes and what better way than from people who can't fight back. You see it with the Hotel tax. When you stay in a motel there is a state tax and local tax and sometimes a special tax (for a stadium or Convention Center). In some cities you pay as much at 15% to 20% TAX on your room. The reason is it is not a tax burden on the local people and who can you complain to about it, you don't vote in that community.

There has been some very creative way of taxing non residents. In a small community north of Tucson, AZ, a school board member proposed that they build a dome stadium for the local high school team. This was met with a community uproar until the school board member explained to the people that they would only have to pay for 20% of the cost because Tucson Electric had a big generating plant in town and they paid 80% of the property taxes. She said let the people of Tucson pay for our stadium. After all don't our children deserve the best?

Several states are looking at ways to raise more money. The one area that looks profitable is to tax internet sales. Many states ask you to pay the sales tax voluntarily when you make a purchase over the internet. The law allows states to collect sales tax if the business has a presence in the state you live. In the past this has meant that if a store or office, like Wal-Mart, had a store or office in your state then you had to pay the sales tax for your state even if you purchased the item over the internet. Some states are trying to argue that the internet constitutes a business presence and therefore every sale over the internet should be taxed and the state can collect the tax. In New York State they have tax free days where you do not pay sales tax. On the income tax form they ask you if you purchased anything on tax free day and asked you to pay the sales tax now. They also ask if you purchased anything over the internet and ask that you pay the tax on your purchases.

What lengths will the government go to, to get more tax money? Will they start to track truck drivers when they drive through the state using an E-Z Pass? Will they look at a salesman's income tax to see what states he rented a car or hotel room and charge him income taxes? Governments have two choices when it comes to finances unlike you who have only one choice. Governments can cut spending or increase taxes when they have a need for money. You can only cut spending or work at a second job.