NEW YORK (AFP) - National Basketball Association clubs will work under a salary cap of 58.68 million dollars for the 2008-2009 season, the league announced Wednesday as the NBA free agency signing period began.

The salary limit for each NBA team went into effect as teams were allowed to begin making trades and siogning free agentds following a moratorium period in which deals could not be finalized so a final cap figure could be calculated.

The cap is up 3.05 million dollars from last season.

The tax level for the upcoming season was set at 71.150 million dollars compared to 67.865 million dollars last season. Any team whose total salary exceeds 71.150 million next season will pay a tax on every dollar over the sum.

For every dollar over the cap, a dollar in tax will be paid.

The NBA's minimum salary, which every team must spend on talent, is 44.010 million dollars, or 75 percent of the cap total.

The mid-level exception to salary cap limits is 5.585 million dollars after being 5.356 million dollars last season.