Correction: This story has been modified from its original version. — The article has been modified from its original version to reflect a more accurate discription of the meals tax application. The Collegiate Times regrets this error.
At Virginia Tech’s home football game versus East Carolina University, Tech charged the local Blacksburg meals tax on concessions for the first time.
Supporters of the tax called it a step for local businesses toward leveling the playing field with the university.
The meals tax in Blacksburg is six percent and is added on top of the Virginia sales tax rate of five percent, meaning off-campus restaurants add 11 percent tax to their customer’s bill.
The local meals tax would be only applied at on-campus dining halls for cash or credit purchases. The tax does not apply to purchases made with student dining plans.
“I think it’s very unfair that those places don’t have to pay meals tax.” Ranae Gillie, owner of Gillie’s and Bollo’s, said.
Gillie said that not having to pay the tax makes the on-campus dining harder to compete with.
“When I went to college there were no fancy food places on campus. It was the dining hall,” Gillie said. “That I don’t think should be taxed.”
Paying the local meals tax is optional for Virginia’s 15 public universities, but Tech is the only university that opts out.
“The money is needed to help the community, and it’s a community effort,” Gillie said. “If Virginia Tech wants to be part of the community, then they also have to contribute.”
Not all businesses on campus have decided to take advantage of this policy. Burger King, when it occupied the Johnston Student Center, opted to collect the local meals tax.
Gillie said local taxes help pay for essential services, such as road maintenance and law enforcement, that the students use like full-time residents.
The Blacksburg government is currently discussing the issue with the university.
“The town and the university have a very unique working relationship,” said Blacksburg mayor Ron Rordam. “We’re just trying to sort out where we need to go to reach an agreement.”
“But I want to make clear that we are not trying to tax meal plans,” Rordam said.
Breslau said most of the students she spoke with didn’t notice local businesses had to collect taxes the university did not, and they were willing to do their share by paying the meals tax.
“It’s a matter of awareness,” Breslau said.
Tech’s spokesman Larry Hincker said that the university is currently preparing an official response to the issue but gave no timetable for the release of the response.
A version of this article appeared in the Oct 1 issue of the Collegiate Times.
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If downtown restaurants can't compete with hugely overpriced dining hall food, they don't deserve to be in business. None of the on-campus locations are competition to downtown, not even West End. Srsly, when you want a great burger, Mikes. Good Italian, Backstreets. Great brkfst, Gillies or Boodrose.
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I think Gillie is trying to spread a wee bit of misinformation and bias here. There is no competition. Until I see off campus students rushing on to campus to dine or a massive increase in student meal plan purchases I am not seeing an issue here just a money grab. Concession stands? Really are they competing with Gillie? Is Tech somehow not assisting with funding for infrastructure? I'd be willing to bet fully 75% of Blacksburg's tax base comes either directly from Tech and its employees and students or indirectly through consumption and revenue sports and events held on campus(hotel restaurant and other amenities). I don't see nor will I ever see Tech's dining hall facilities or concession stands in competition with off campus eateries and restaurants.
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Your right that there is no competition. Tech has leased a monopoly on food service at sporting events out to out to Center Plate / Boston Concessions. While President Stegar, the BOV and the rest of our bureaucrats are served in the luxury boxes by their own monopoly - Personal Touch Catering.
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Maybe Gillies is feeling the pressure because they dont sell MEAT! lol. im kidding (kinda) but no, stop whining! The school knows they shouldnt be charging Tax on the meal plans because they already charge students MORE to pay for the meal plans than they actually get to SPEND. Adding a tax on top of that would be even MORE money being stolen from the kids.
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In all honesty, I went to Gillie's twice in my 6 years in Bburg. First time was for dinner, ordered the salmon meal b/c that was the only source of protein-wasn't to bad, but I've had better...Went to a breakfast with a friend a year or two later and found hippie hair in my eggs...please wash your hands, brush your teeth and lay off the granola!
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The tax is not on meal plans. It is only on cash and major credit card purchases.
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I agree that the VT administration is gouging us at the cash register. But to say that they Blacksburg businesses don't deserve to exist is a bridge too far. Any businessman willing to make a "go" of it in a free market deserves a chance.
The problem is Tech owns over 20% of the dining locations in Blacksburg and holds the currency for those locations hostage in our dining plans.
That's not a free market and while VT must provide food service for Students, the State of VA has no business operating anything beyond enough cafeterias to feed us.
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This statement is untrue: "The local meals tax is only applied at on-campus dining halls for cash or credit purchases." VT does NOT collect the meals tax that would benefit its home town; that's the reason they are being called to behave as decent citizens and Play Fair. Purchases made with student dining plans are exempted by state law and will remain so -- this is not in contention.
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There isn't really a "meal plan" anymore: major flex, minor flex, commuter cash, dining dollars, Hokie Passport. Where does one draw that line?
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Well, nether major flex, minor flex, commuter cash, dining dollars nor Hokie Passport are taxed on campus now and no tax is proposed to be charged. Essentially all of those things are different forms of the meal plan. The meals tax part of the proposal is for cash and credit card purchases only.
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I noticed that the price of a Coke at that game went from $2.50 (last year)up to $3.50. Now a 6% meals tax would have increased that by 15 cents. It not the Town of Blacksburg that screwing us. It's the administration and the vendors with a choke hold on us while were at the games.
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