Owners proposing multi-level luxury tax
The most recent proposal made by NBA owners to players in an attempt to end the lockout includes a luxury tax that has four levels, SheridanHoops.com reported Wednesday.
According to the report, each ascending level would impose a greater tax on teams exceeding that dollar amount with their payroll.
Under the last agreement that expired June 30, teams paid a 100 percent tax on every payroll dollar above the established threshold of $70.3 million. The threshold is determined annually by a computation of basketball-related income that also establishes the salary cap.
The report said the 100 percent level would remain in place for teams slightly above the threshold and the highest level would impose a 400 percent tax for teams that exceed the threshold by $10 million to $15 million.
The sides are meeting Wednesday in New York. The NBA season is scheduled to start Nov. 1.