NY Islanders Kyle Palmieri helps strike down Pittsburgh’s “jock tax” in court victory

New York Islanders forward Kyle Palmieri was among those listed as an appellee in a case that reached the Pennsylvania Supreme Court — and ultimately toppled Pittsburgh’s so-called “jock tax.” On Thursday, the state’s highest court ruled the tax unconstitutional, ending nearly two decades of a policy that funneled millions of dollars annually from visiting athletes and entertainers into city coffers.

The tax, first imposed in 2005, required non-Pittsburgh residents to pay a 3% levy on income earned while performing or competing at publicly funded venues, including Acrisure Stadium, PPG Paints Arena, and PNC Park. Resident athletes, however, were not taxed at the same rate. The disparity drew the ire of players’ associations across professional sports.

In 2019, the unions representing NHL, NFL, and MLB players filed suit in Allegheny County Common Pleas Court, arguing the measure unfairly discriminated against nonresidents. Palmieri, a veteran forward who has played in Pittsburgh dozens of times throughout his career, was among those named as parties challenging the practice.

In a 14-page opinion, Justice David Wecht wrote that Pittsburgh failed to provide “concrete reasons” to justify taxing nonresident athletes and entertainers differently than city residents, making the levy a clear violation of the state’s Uniformity Clause.

The ruling is a significant financial blow for Pittsburgh, which had relied on the so-called “jock tax” for steady revenue. Without it, city officials will need to identify new ways to offset the millions previously collected each year. For players, however, the decision is a landmark victory in their fight against what they considered an inequitable system. It also raises questions about the sustainability of similar taxes in other U.S. cities that target visiting athletes as a distinct revenue source.