|
Sales tax takes over campus
 Media Credit: Jessica Tonsfeldt
Student Bill Kiley buys a smoothie in Atwood, where an increase in taxes has made tasty treats more expensive . [Click to enlarge]
|
|
Students regarded soda machines with surprise after the implementation of a sales tax required students to deposit an additional quarter this week
Despite the lobbying of MnSCU, the legislature pursued a proposal which recommended previously tax-exempt public and private elementary, middle and secondary schools, be subjected to the 6.5 percent sales tax.
"Late in the session, legislature passed a law to remove exclusion from sales tax on college and university campuses," said Steve Ludwig, vice president of administrative affairs.
The amended law in the Minnesota Statute declares that meals served at colleges, universities and private career schools are subject to the sales tax unless provided under a board contract, while meals served at public and private elementary, middle and secondary schools remain exempt from the sales tax.
The legislation also held that any food sold from vending machines is taxable at all schools including K-12 schools, effective for sales and purchases made after June 30, 2002.
According to Ludwig, the pricing of products from vending machines allows for more flexibility on individual contract basis.
"We required that most of the beverage machines have card readers in an effort to limit the impact of the increased vending prices on students," Ludwig said.
The card readers, Ludwig said, allowed contract prices for vending beverages to be set at $1.05.
"For students paying with cash or off campus, the price is set at $1.25 which makes it more convenient," Ludwig said.
"The machines can hold plenty of change to accommodate that kind of sale."
The "convenience" of the quarter increase remains a debatable issue with some students like sophomore Abby Leblanc, who visits the vending machine on an almost daily basis.
"It really pissed me off," said Leblanc. "You don't only have to find a dollar, now you have to find a quarter to go along with it."
According to Ludwig, the prices of snacks in the vending machines are based on the market and aren't controlled by contracts, so prices are set to maximize sales and incomes.
"Snacks are significantly less in cost, so the impact isn't as great," Ludwig said. "If there is a need for increase, it will not be across the board, but will reflect the market."
The meal plan is one aspect of university life that will not be affected by the law. According to Scott Henning, food service director at Garvey Commons, the meal plan as part of the board contract is exempt from tax.
"The greatest impact will be on dining services in Atwood, or in Garvey if you pay with cash," Henning said.
The sales tax is a state mandate, Henning said, and the university had no choice but to implement it, and most students are understanding of that fact.
"The problem was that the sales tax happened so quickly and quietly," Henning said. "It was very unexpected."
The tax, according to Henning, can be attributed to the state of the economy and something students just have to accept.
"This is a sales tax issue, we're not pleased about this being a taxable situation now, but our hands are tied," Henning said.
|
|
|
|
Privacy Policy Network Advertising Article Syndication
|
|
