Correction: This story has been modified from its original version. — This article has been modified from its originial publication. Michael Sutphin was misquoted "Tech would get back $6 million" instead of "$6,000." The Collegiate Times regrets this error.
Some have accused Virginia Tech of not playing fair — not on its athletic fields, but in its dining halls and hotels.
Play Fair Tech is a group of restaurant owners, business owners, Tech faculty and town citizens who have come together around the issue of whether Tech should collect meals and lodging taxes from visitors of the university.
The meals tax would not apply to students or university employees who have a meal plan, which is already taxed, but to visitors who eat in dining halls and pay with cash or credit.
Restaurants in Blacksburg collect a six percent meals tax and hotels collect a seven percent lodging tax. For decades, Tech has not collected either in its dining halls or at the Inn at Virginia Tech.
“We really feel like this is a fairness issue,” said Michael Sutphin, a spokesman for the Tech College of Agriculture and Life Sciences and a member of Play Fair Tech’s steering
committee.
“It wouldn’t be taxing the university,” he said.
Instead, he said the burden would fall on visitors.
“The town did a study on the potential impact of Virginia Tech collecting the meals tax and found that it would raise over $200,000,” he explained. “The money would go into the general revenue fund for Blacksburg, which will help Blacksburg provide any of the services it offers and it will benefit everyone.”
The town of Blacksburg does not currently levy the meals or lodging tax on Tech.
“The university is not legally compelled to collect the tax, but it is also not legally compelled not to,” said Susan Anderson, a member of the Blacksburg Town Council.
Section 22 of the town code, which deals with taxation, does not include specific language about Tech.
“Virginia Tech is a state agency and the town is a municipal government. The municipal government cannot compel Virginia Tech to do this, and there’s nothing in the code that enables a state agency to collect and remit taxes for a municipal government,” said Larry Hincker, university spokesman. “We just don’t have the authority in the state of Virginia to collect a municipal tax.”
According to Play Fair Tech’s website, all 15 public four-year universities in Virginia collect the taxes except Tech.
However, Hincker explained that there is an important difference between dining at Tech and at the other universities.
“Other universities in the state have private vendors running their dining systems,” Hincker said. “Private vendors here do collect the meals tax.”
According to Hincker, the only dining facilities with branded products that collect the meals tax on campus are Subway and Seattle’s Best Coffee, both in the Johnson Student Center. Neither is on a student meal plan.
Anderson said that the town and the university have been involved in an ongoing conversation about the issue for several years, and Tech will be collecting a tax on the concessions sold at games for the first time this year.
“One of the things that we discovered when we looked into it is that Centerplate was not collecting the tax, and we agreed that it is a private vendor under contract with the university, so it will be collecting the tax this year,” Hincker said.
Centerplate is the private vendor that provides concessions at Tech football games and other athletic events.
“With all the different home games and all the attendees, a considerable amount of money could be collected,” Anderson said.
According to Sutphin, Tech could actually make money by collecting the meals tax.
He said there is a provision that allows restaurants to keep three percent of the total meals tax they collect in order to cover the costs of collecting the tax. This was more important in the days before automated cash registers. Today, he said, many restaurants are able to pocket that three percent because the cost of collecting the tax is low.
“Of the $200,000 collected, Tech would get back $6,000,” Sutphin said. “It wouldn’t cost Tech anything, and they would actually get money back by doing this.”
Play Fair Tech has created a petition that it intends to present to the university.
“I believe we have over 500 signatures right now,” remarked Sutphin. “We’re going to continue for a few weeks into the semester and then take it to the university.”
Sutphin said that he is not sure why the university has declined to collect the tax, explaining that though the university’s presence is already beneficial to the region, it should still collect the tax.
“Virginia Tech is a major economic driver in the region, but that doesn’t mean it shouldn’t collect the tax and help give back to the community,” he said.
It is unclear how the university will respond to the group.
“The university has not formally responded to the town on this issue,” Hincker said, “but we don’t see any way we can legally do this thing.”
A version of this article appeared in the Aug 12 issue of the Collegiate Times.
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I'm not surprised to read Susan Anderson is leading the charge for more taxes.
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Just to clarify, student meal plans are already tax-free. They have never been taxed, and never will be. Just like any other restaurant owner, Tech would get back 3 percent of the estimated $200,000 it would collect from campus visitors. This is about $6,000, not $6 million. Despite my title in the article, I am speaking for the Play Fair Tech group and not Virginia Tech.
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This is not about "taking Tech to task"...this is about an entity occupying more than 30% of our town's land mass, and the revenue it generates that is tax free...YET, relies on TOWN PAID SERVICES to maintain access to roads, police, fire, hospital, US and Interstate highways, street lights, traffic flow, run-off, developement...the list goes on and on.
This is about an equitable burden that local residents are now carrying themselves WITHOUT the help of the major corporation that sits as the bullseye in our community - that corporation IS VA TECH.
I (and most of us LOVE TECH) and we enjoy having the close relationship the town and university are always striving to maintain. BUT, if (APPLE) were headquartered and occupying the community (as Tech) does...there is not one single resident who would consider "paying the way for their presence" without any expectation that the corporate citizen would pay its fair share.
TECH paying into the pot, will actually LOWER resident's taxes...
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I wish they would collect the taxes the they could give the money to the school district to reconstruct the collapsed high school without increasing property taxes like they want to do now. Pay your taxes tech!
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It happens all the time with factories communities pay to have them in their town. Tech generates jobs and thousands of customers for local businesses. Tech already contributes more than it's fair share for the community. Frankly you Fair and Balanced people are being a bit obtuse in your evaluation of Tech's role in the community.
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Where would Blacksburg be without Tech? Now, let's reverse it...where would Tech be without Blacksburg?
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For those of you who do not understand my point....it's pretty easy to understand that Tech could survive without Blacksburg...Blacksburg could not survive without Tech. Good businesses will thrive in Blacksburg. I can guarantee Chipotle is busy non-stop. Bull and Bones is a great example of a thriving business....my decision to eat on campus or off campus depends solely on the quality of food; it has nothing to do with price/taxes.
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Tech would be fine without Blacksburg, the campus would have to pay for staff but it has everything a student needs on campus.
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“Other universities in the state have private vendors running their dining systems,†Hincker said. “Private vendors here do collect the meals tax.â€Â
So what are you saying Mr Hincker? Tech has found a way to game the system, invested a lot in that loophole and they are entitled to keep getting away with it?
This is "Big Government" at it's worst. It is the State opening business to compete with our local merchants.
If that's the case Virginia's other college public
college towns:
Newport News
Williamsburg
Fairfax
Harrisonburg
Farmville
Norfolk
Radford
Petersburg
Fredericksburg
Charlottesville
Richmond
Lexington
Should prepare to begin loosing their localities meals tax revenue as their state universities convert their meal plans to Virginia Tech's Community responsibility avoidance model.
Perhaps Mr. Hincker would suggest that those communities should also be grateful (and quiet) to exist in the shadow of their State institution.
The group "Play Fair Tech" and their PlayFairTech.com are the logical result of neglecting the community that nurtured Virginia Tech since Blacksburg welcomed Preston and Olin in 1851 and converting a state institution in competition with local businesses.
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Residents wouldn't get lower taxes because of the revenue, the town gov would just find areas in which to spend it. Even if the gov did use it to offset property taxes, Bburg has ~13k households, divide that into 200k and you're talking chump change. You're better off arguing that the money would support XYZ than saying it would offset taxes. Also, the Apple argument is just stupid. Unlike Apple, Tech is a State funded entity, apples & oranges...
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Currently the meals tax info goes into the town's "general fund". Trying to specify where individual tax dollars are spent would be like trying to identify which population of the town disproportionately consumes specific town services, and taxing based on that. It's specious - The money in the general fund is appropriated yearly - where the town decided that it needs to go, based on public input.
I understand your point about apples and oranges, and that was true, until Tech started abusing it's non-profit "State funded entity" status by acquiring franchises and going into competition with the private sector.
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Go screw play fair tech do you realize that the only reason your downtown is thriving is because of the university. Without tech you'd be some backwater two bit who gives a crap town. Thousands of tech students live work and eat off campus that's how the town gets tax revenue from tech. Keep your hands out of our pockets No New Taxes!
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Although I initially signed this petition, after thinking about it, why should VT collect the tax? It goes into the town's general fund, which covers "overhead" expenses related to the town such as police, road maintenance, public facilities, etc. However, these same items are already covered by VT on school grounds. These costs are thus factored into VT's costs for the lodging and meals in their business model, albeit indirectly.
The reason a tax should be levied is because the public gets a service from it. However, in this case all the services the town would pay for if VT was actually part of Blacksburg, the school is actually responsible for on its own. So really this is just a way for the town to squeeze just a bit more money out of the students and employees at Tech. It will make the university loose money as business will go to the town instead of VT because of this "double taxation." I hope the university doesn't cave on this issue.
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Your right the general fund does pay for public services. They help to pay for the 2 full time town staff that clean up downtown trash and vomit, you can't drive to tech without using a road that the town maintains or provides police patrols for, Tech would have no access to the water from the New River without the town, there would be no Blacksburg Transit without Blacksburg.
If your statement that -"These costs are thus factored into VT's costs for the lodging and meals in their business model, albeit indirectly. " is true - "being a business" would make tech a for profit entity and they would loose their tax exempt status
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Michael, stop acting like all students throw up and destroy the town. You treat us like children. The majority of us are mature adults who are here to learn and grow. Treat us like adults. I was at a town council meeting and a business owner threatened..THREATENED to turn something into "student housing." How do you expect Virginia Tech to give you any time when you...in particular...are disrespecting and generalizing the student body? It's sickening really...and quite offensive.
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And with regards to the BT, do you realize that Virginia Tech pays them ~$2million dollars per year, derived from student fees. 98% of their ridership is students. You can look at like "Tech needs the BT....or that the BT needs Tech." Virginia Tech has the capital to start their own bus service, but the BT would NOT EXIST without Tech. Also, VT SGA just supported VT students to build (for unbelievably cheap) an innovative solution that has garnered national press for the BT. Virginia Tech, by paying for the BT, has supplied hundreds of jobs and virtually free labor to Blacksburg residents. You have your logic backwards.
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I'm sorry if I did anything to lead anyone to believe that "all students throw up and destroy the town." I've never said that and it is not what I intended. I was only trying to elucidate a few areas where all of Blacksburg residents understand their individual impact on services provided by the town.
I do think that this misunderstanding is a perfect illustration of how easily the subsets of our Blacksburg community can misinterpret one another.
I look forward to working on bridging that gap with you and making Blacksburg a stronger and more cohesive community where we encourage open expression within a climate of civility, sensitivity, and mutual respect.
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You're right - I jumped to a conclusion. I just hear so much complaining about the "students" like we are some pest or insect that keeps nagging all of the time. If the town (and Virginia Tech) for that matter just took a second and looked around, they'd notice there is a ton of underutilized talent. Students at Virginia Tech are intelligent, creative, innovative (see BusTracker), and their talent is not being harnessed like it should be. The town and Virginia Tech would be much better off if they treated students like mature, valued members of society
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Brandon, Let's forget it and move on. Coffee?
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I'm down. Shoot me an e-mail: brandoncarroll@vt.edu
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I heard recently that there are something like 30 police officers on duty on Saturday night, but only 2 on Sunday morning...now I'm not saying all students are out of control, of course they aren't. But I think a reasonable person would draw the connection between the increase in police coverage and the time of day/night students are out and about. These are costs that the town covers to provide this service.
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Those are state police officers, the state of Va covers that expense. The town of Blacksburg benefits from having a state police station next to it at no cost to them.
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How are they state police officers? Unless you're talking about on the highways, BPD patrols the downtown area.
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No the State Police don't just worry about the highways. They patrol the campus and downtown areas. They're also the main group that deals with drunks at night. They hold seminars on how to avoid being arrested by them at 2am walking from downtown.
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This is a fairness issue and just to remind those who are misinformed, this is not raising a tax, it is collecting a tax -- a tax that is collected in every restaurant off campus and one that I am sure no one even notices. It is about fairness and I am glad residents, business owners and council members are taking this issue seriously.
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Really? You don't think people notice the extra 11% added onto every meal?
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The meals tax is 6% not 11%. Is 60 cents on a $10 meal really going to impact anyone's purchasing choice?
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Yes 60 cents is alot to add to every meal especially when you have no right to it. NO NEW TAXES!! We're already taxed to heavily we have to fight every increase because those cents add up to dollars real quick.
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Please read this.
http://hyperboleandahalf.blogspot.com/2010/04/alot-is-better-than-you-at-everything.html
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Rather than attack my points you attack my grammar. What an intellectual zilch you must be. You disagree but you fail to articulate anything other than a link.
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Perhaps Blacksburg should take a look at how other small towns attract and keep businesses. Namely, tax incentives. Most of these towns want the businesses there because of all of the jobs and other perks that come with having that business there. Perhaps the town of Blacksburg should be more appreciative of what the school has done for this town instead of trying to squeeze more money out of the pockets of people who give thousands in this town a job. In my time here, I haven't seen the town do anything intelligent with the money that they already have.
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Bingo. Great answer.
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Has any study been done on whether on-campus dining and lodging would suffer if the tax were collected? I would imagine that most people without meal plans tend to eat off campus, as I did, and most people who stay at the Inn at VT aren't going to stay elsewhere because of a tax. I'm not for taxation without reason, and I don't think VT's decision to not collect the tax is extremely harmful to the town, but I'd like to see some figures from both sides. From the town: what would the extra revenue go toward? From VT: Would collecting the tax hurt revenue?
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“The university is not legally compelled to collect the tax, but it is also not legally compelled not to,†said Susan Anderson, a member of the Blacksburg Town Council.
..I'm not legally compelled to donate $200,000 to the town every year, you don't see me volunteering it up...
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The article does state that the school could retain a portion of the tax collected, making it a win-win. Unless, of course, you're a consumer.
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The following is in terms of the Town providing water to Virginia Tech. The Blacksburg-Christiansburg-VPI (BCVPI) Water Authority provides, through transmission mains owned and maintained by the BCVPI Water Authority, the water that used by Virginia Tech. The majority of water is provided through these transmission mains that are connected to waterlines owned and maintained by Virginia Tech. There are interconnections between Virginia Tech waterlines and the Town of Blacksburg waterlines. At these interconnections, water will flow in the direction of greatest demand - sometimes into the Town and sometimes into campus - which help both entities in the event of an emergency.
In terms of the Blacksburg Transit, does anyone know how much money Virginia Tech (student fees) contributes? I believe that VT already pays a portion to support this service.
As for the roads on campus, I believe they are a joint responsibility between VT and VDOT. As for accessing VT, it could be done directly from VDOT's US Route 460 onto Southgate (the VT portion). Would it make sense to limit access through this connection? Probably no.
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When the students create trash and vomit downtown, where did these students purchase the "trash" and alcohol? Was the alcohol purchased on campus? Where were the food wrappers, grocery bags, drink cans, etc… purchased? I suspect the alcohol was consumed at a local bar or ABC store, which should be paying taxes. As for the trash, some was probably purchased as goods on campus and then ended as litter on the Town’s street, but I would have to believe that some of the litter on VT campus was purchased at stores in one of the two towns. I would even go so far as to speculate that students living on campus purchase the majority of their goods from the stores in the two towns than from the on-campus stores, which would leave me to believe that the majority of the trash in both VT and the Town has been “hit†with a sales tax. Also, I suspect the alcohol and the majority of the food consumed during tailgating was purchased at stores off-campus; and therefore, have already been “hit†with a sales tax. Consequently, the resulting trash scattered through campus and Town probably had some tax paid on it when it was first purchased. Since taxes are already paid on the majority of this trash, should the Town provide folks to assist in cleaning the VT campus?
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As for the Town’s police department, they do an excellent job and there appears to be a good relationship between the VT police and the Town’s police. If the Town begins to receive sales taxes from stores on campus, then should the Town’s police begin to take a greater role of patrolling campus such that VT could begin to eliminate some patrols (staff)? As for the additional patrol to police the Town at night, where did the students purchase their alcohol and were these students spending money in bars, stores, and restaurants located in the Town? If yes, then it would appear that the consequents of their actions are a result of the things already being taxed.
I feel folks tend to forget that Virginia Tech is almost like a municipality with many responsibilities that may not exist at other universities. One person states, Virginia Tech “… relies on TOWN PAID SERVICES to maintain access to roads, police, fire, hospital, US and Interstate highways, street lights, traffic flow, run-off, development…â€Â, but people need to realize many of these things are maintained, managed, and operated by either Virginia Tech or the Commonwealth and not by the Town.
If anything is to happen with the funds, Virginia Tech should use the revenue stream to bolster more funding for the campus police, emergency preparedness, and trash pickup. This would seem to be in the best interest of both VT and the Town.
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e information - http://www.roanoke.com/editorials/wb/262573
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