Collegiate Times

Students will not be affected by any meal taxes when eating in Virginia Tech's dining facilities.

University and Blacksburg officials are considering the possibility of expanding the town's meal tax to parts of the Virginia Tech campus.

There are no definite plans in place at this time.

"The town hasn't asked for anything specifically yet," said university spokesperson Larry Hincker.

Blacksburg Mayor Ron Rordam said the town hopes to cooperate with Virginia Tech to address the food taxes.

"We don't have any specifics, but we would like to work with the University on the overall meal situation on campus," Rordam said.

Rordam said he first wants to address situations that do not involve students.

"Focus where transactions take place that are not related to the overall mission of the University," Rordam said. "The first thing that comes to mind is the Inn at Virginia Tech. We need to talk about that situation."

Rordam said there is no intention to tax student meal plans.

Hincker also emphasized that students' dining prices will not be effected.

"Meal plans are off the table," Hincker said.

The meal tax in Blacksburg is six percent. It is a local tax that varies by municipality.

For example, in Richmond, it is 11 percent.

This tax is paid by the purchaser of all prepared foods and beverages served in places such as restaurants, coffee shops and movie theaters.

Food in places such as grocery and convenience stores that do not serve the food are not affected by the current tax.  

The issue of meal taxes is somewhat complicated because, although students are exempt from taxes on their meal plans in every case, universities can charge meal taxes to other customers using the dining facilities.

Often, a third party operates those dining facilities applying the meal tax, not the university.

One such example is William and Mary.

Virginia Tech, on the other hand, owns all the franchises on campus, preventing taxes from being assessed on university operations.

Hincker said that the unique nature of Virginia Tech's setup allows for the "high quality and low cost of food on campus" that students might not see with a third party.

However, Rordam said the setup created confusion.

The main concern for Rordam is "the competitive advantage that some institutions can have if they don't charge a meal tax."

Rordam's example was the Inn at Virginia Tech, as he said they have an advantage over downtown establishments.

"If you think about the Inn, if they're not charging a meal or lodging tax that's automatically five to six percent lower [price] for the same service.," Rordam said.

Mark Golusky, co-owner of Mike's Grill said town restaurants would like to be on equal footing with the university.

"A meal tax could help the town out as a whole," Golusky said.

Golusky said the increase in on- campus dining halls has cut down on students eating in downtown establishments such as his.

"I've been here 18 years and there didn't used to be as many dining facilities on campus, so more students ate in town," Golusky said. "Locals now eat at West End."

He hopes to see a new tax plan to increase revenue.

"This could help them get revenue back that they've lost over the years," Golusky said.

Blacksburg cannot force the university to collect a meal tax.

Among Virginia universities, Tech and Christopher Newport University are the only schools that do not contract dining services out to a third party.

Tech is not the only school in Virginia without a meal tax.

Virginia Commonwealth University in Richmond is one example of another university exempt from the local meal tax.