NBA luxury tax
E549014
The NBA luxury tax is a financial penalty system that charges teams extra money when their total player salaries exceed a league-defined threshold above the salary cap.
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
National Basketball Association rule
ⓘ
financial penalty system ⓘ |
| administeredBy | National Basketball Association NERFINISHED ⓘ |
| affects |
player contract negotiations
ⓘ
sign-and-trade transactions ⓘ team roster decisions ⓘ trade strategies ⓘ use of bi-annual exception ⓘ use of mid-level exception ⓘ |
| appliesTo | NBA teams ⓘ |
| basedOn |
league-defined tax threshold
ⓘ
team payroll ⓘ |
| calculatedPer | dollar above tax threshold ⓘ |
| definesStatus |
non-taxpaying team
ⓘ
taxpaying team ⓘ |
| hasComponent |
distribution of tax payments
ⓘ
repeater tax rules ⓘ tax rate bands ⓘ tax threshold ⓘ |
| hasConsequence | harder cap-like restrictions for second-apron teams ⓘ |
| hasPurpose |
limit excessive team spending
ⓘ
promote competitive balance ⓘ redistribute money from high-spending teams ⓘ |
| hasType | soft cap enforcement mechanism ⓘ |
| introducedInLeague | National Basketball Association NERFINISHED ⓘ |
| introducedInSeason | 2002–03 NBA season ⓘ |
| introducedUnder | 2002 NBA collective bargaining agreement NERFINISHED ⓘ |
| jurisdiction | United States professional basketball ⓘ |
| measuredIn | United States dollars ⓘ |
| modifiedBy |
2005 NBA collective bargaining agreement
NERFINISHED
ⓘ
2011 NBA collective bargaining agreement ⓘ 2017 NBA collective bargaining agreement NERFINISHED ⓘ 2023 NBA collective bargaining agreement NERFINISHED ⓘ |
| paidBy | teams above tax threshold ⓘ |
| paidTo | NBA NERFINISHED ⓘ |
| penalizes | high-spending teams ⓘ |
| rateIncreasesWith |
amount above tax threshold
ⓘ
repeater status ⓘ |
| relatedConcept |
NBA salary cap apron
NERFINISHED
ⓘ
NBA second apron ⓘ |
| relatedTo | NBA salary cap ⓘ |
| repeaterDefinedBy | number of seasons above tax in prior years ⓘ |
| revenueDistributedTo | non-taxpaying teams ⓘ |
| revenueUsedFor | league purposes ⓘ |
| thresholdAbove | NBA salary cap NERFINISHED ⓘ |
| triggeredWhen | team payroll exceeds tax threshold ⓘ |
| usesStructure |
progressive tax rates
ⓘ
repeater tax rates ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.