Lux Tax Info

radiorosco · 04-07-2018, 01:54 PM

Where can I find what the Lux tax is going to be? I would like to be aware of this info as I set my budget. The only I can find is in the settings, it states the tax will be anything over 170% of the league average for payroll and then 25% tax for anything over.

malor · 04-07-2018, 03:52 PM

The number is not known ahead of time.

It depends on the ending payrolls for all teams and the end of the season. The total payroll divided by the number of teams in the league determines the average. The luxury tax is applied to those teams that had a payroll over the average. Since the final payroll for each team is variable as players are signed and traded, you won't know what it is until the season ends.

The final number will appear on the Accounting Tab in the Front Office Tab. The line item is called "Revenue Sharing".

The only planning you can do to know if it applies will be that your payroll is very high all season long. Odds are greater the tax will apply to your team.

See the manual for more info:
http://manuals.ootpdevelopments.com/...age=financials
Search for Luxury Tax on the page. It is near the bottom.

radiorosco · 04-07-2018, 07:40 PM

Quote:

Originally Posted by malor

The number is not known ahead of time.

It depends on the ending payrolls for all teams and the end of the season. The total payroll divided by the number of teams in the league determines the average. The luxury tax is applied to those teams that had a payroll over the average. Since the final payroll for each team is variable as players are signed and traded, you won't know what it is until the season ends.

The final number will appear on the Accounting Tab in the Front Office Tab. The line item is called "Revenue Sharing".

The only planning you can do to know if it applies will be that your payroll is very high all season long. Odds are greater the tax will apply to your team.

See the manual for more info:
http://manuals.ootpdevelopments.com/...age=financials
Search for Luxury Tax on the page. It is near the bottom.

Awesome, thanks for the help!

Sent from my SM-G930R4 using Tapatalk

malor · 04-07-2018, 07:55 PM

You are welcome.

Personally, I ignore it. The money is taken out along with the owners profit, not my GM salary. If you have a big budget/payroll and you are winning, you won't even notice it is gone since it occurs at the end of the season. If the amount is large, odds are you are doing well.

If you are a small market team with a small budget/payroll, the income from it might help in the short term to improve your team, but you can't count on it long-term unless you like remaining at the bottom of the standings.

Basically, if you are winning and making money, you will be spending that money and will eventually get hit by the tax. That is by design, it attempts to balance the money across the league.

NoOne · 04-08-2018, 03:45 AM

i've set this up as 150 of avearge and a 500% penalty and it still barely moves the needle for the poorer teams. if you are looking for any tangible re-distribution of wealth, i'd go about it a different way.

like, malor said, ast worst it merely effects your carry-over cash on hand.. it doesn't even really affect payroll choices, in my experience. maybe it reduces budget for next year? have to check on minutiea, but it's typically not a major effect.

04-07-2018, 01:54 PM	#1
radiorosco Minors (Single A) Join Date: Mar 2014 Location: Belleville, WI Posts: 60	Lux Tax Info Where can I find what the Lux tax is going to be? I would like to be aware of this info as I set my budget. The only I can find is in the settings, it states the tax will be anything over 170% of the league average for payroll and then 25% tax for anything over.

04-07-2018, 03:52 PM	#2
malor Major Leagues Join Date: May 2015 Posts: 343	The number is not known ahead of time. It depends on the ending payrolls for all teams and the end of the season. The total payroll divided by the number of teams in the league determines the average. The luxury tax is applied to those teams that had a payroll over the average. Since the final payroll for each team is variable as players are signed and traded, you won't know what it is until the season ends. The final number will appear on the Accounting Tab in the Front Office Tab. The line item is called "Revenue Sharing". The only planning you can do to know if it applies will be that your payroll is very high all season long. Odds are greater the tax will apply to your team. See the manual for more info: http://manuals.ootpdevelopments.com/...age=financials Search for Luxury Tax on the page. It is near the bottom.

04-07-2018, 07:55 PM	#4
malor Major Leagues Join Date: May 2015 Posts: 343	You are welcome. Personally, I ignore it. The money is taken out along with the owners profit, not my GM salary. If you have a big budget/payroll and you are winning, you won't even notice it is gone since it occurs at the end of the season. If the amount is large, odds are you are doing well. If you are a small market team with a small budget/payroll, the income from it might help in the short term to improve your team, but you can't count on it long-term unless you like remaining at the bottom of the standings. Basically, if you are winning and making money, you will be spending that money and will eventually get hit by the tax. That is by design, it attempts to balance the money across the league.

04-08-2018, 03:45 AM	#5
NoOne Banned Join Date: Apr 2015 Posts: 7,273 Infractions: 0/1 (3)	i've set this up as 150 of avearge and a 500% penalty and it still barely moves the needle for the poorer teams. if you are looking for any tangible re-distribution of wealth, i'd go about it a different way. like, malor said, ast worst it merely effects your carry-over cash on hand.. it doesn't even really affect payroll choices, in my experience. maybe it reduces budget for next year? have to check on minutiea, but it's typically not a major effect.