They are still by far paying more in luxury tax than any other franchise in major league baseball, but at least the Yankees can appreciate the fact their bill continues to decrease.
According to figures obtained by the Associated Press, the Yanks owe $23.88 million to the commissioner’s office in luxury tax for 2007, marking the second straight year their tax bill has dropped.
The only other team facing a tax bill is the Red Sox, who owe $6.06 million – but it’s obviously a tax well incurred, as Boston continues to revel in a second World Series championship in four seasons.
The Yanks had a $26 million tax bill last season, down from the record high of $33.98 million they spent in luxury tax for the 2005 season.
In computing the luxury tax, the commissioner’s office takes the average values of contracts for 40-man rosters and adds benefits.
The threshold for last season was $148 million – teams are taxed at 40 percent for every dollar spent above that number. With a payroll of $207.7 million, the Yankees had $59.7 million on which they could be taxed.
The tax bill for last season wasn’t helped by the midseason addition of Roger Clemens, who collected $17.4 million for four months of dubious work.
That acquisition alone boosted the Yankees’ tax bill by $6.98 million.
Considering that Clemens went 6-6 with a 4.18 ERA and was ineffective in his lone postseason start, it was essentially $24 million flushed away.
Next season’s threshold, for luxury tax purposes will increase to $155 million, and the Yankees’ payroll is expected to decrease, meaning the team’s tax bill could fall below $20 million.
But it would only take a trade for Johan Santana to change that outlook.
In the five seasons since the luxury tax was instituted, the Yankees have incurred taxes of $121.6 million.
The Red Sox are next at $13.86 million, and the Angels – the only other team faced with a luxury tax bill over the last five years – are third at $927,059, which was incurred in 2004.
mpuma@nypost.com