Sacramento, CA – Legislation to exempt gold, silver, and bronze Olympic medalists from paying taxes on those achievements today passed out of the Assembly Revenue and Taxation Committee on a bipartisan vote. Assembly Bill 2323 by Assemblyman Jeff Gorell (R-Camarillo) would exempt California Olympians and Paralympians from state taxes on awards by the U.S. Olympic Committee (USOC) for their success in the Olympic and Paralympic Games. The exemption does not include sponsorship deals and other endorsement income.

“Most countries compensate their Olympic athletes, but athletes representing the United States do so typically without reward unless they win a medal,” stated Assemblyman Jeff Gorell. “Upon being welcomed home these athletes who wear the red white and blue Olympic uniform of the United States are then subject to federal and state taxes on their achievements. This is wrong.”

“As an athlete who has dedicated my life to the Olympics, I’m very aware of the financial struggles that fellow athletes face to become Olympians,” stated Stephanie Brown Trafton, Olympic gold medalist in track and field. “I’ve been in three Olympics representing 20 years of dedication for my country. We pay a financial price, time spent away from our families, and the reward we receive represents only a small fraction of the work that is put into competing.”

In addition to the physical medal earned by Olympic and Paralympic athletes finishing first, second, or third in their respective events, the USOC, which receives no regular government funding, provides honoraria to medaling athletes. Athletes are generally awarded $25,000 for a gold medal, $15,000 for silver, and $10,000 for bronze. This amount, in addition to the value of the medal itself, is fully taxable. In 2012, some bronze medalists were levied a tax of $3,500, silver medalists a tax of $5,385, and gold medalists a tax of $8,986.

Most American Olympians and Paralympians are amateur athletes with modest incomes, earning nothing for Olympic and Paralympic competition. For instance, only half of the country’s track and field athletes ranked in the top ten in the nation make more than $15,000 a year from the sport. This bill will provide tax relief to California’s medalists, many of whom have made enormous sacrifices in pursuit of Olympic success.