GSB tries to drop sales tax on books

Wendy Weiskircher

Several members of the Government of the Student Body said they are working to ease the burden of the rising costs of education with a proposal to eliminate taxes on textbooks at the University Book Store, a policy that could take effect by the beginning of spring semester.

However, representatives at the Campus Book Store, 2300 Lincoln Way, said the tax-free books at the University Book Store would create an unfair advantage in the market, taking away from the competition that ultimately benefits students.

The University Book Store, a nonprofit organization established by the university, is entitled to sell textbooks without charging tax, said Lynette Seymour, general manager of University Book Store. However, Campus Book Store, a private enterprise, must charge taxes unless excused by the state legislature.

“What we’re planning on doing is developing a case for why there should be a tax exemption for education-related items in the [University Book Store],” said Andy Tofilon, director of intergovernmental affairs for GSB. “Then we will present our proposal to the administration and the Board of Regents.”

After the regents voted last month to increase tuition by 9.9 percent for the 2001-2002 school year, GSB officials began to look for ways to reduce other expenses. The project, headed by Tofilon and other members of the GSB cabinet, is “in its infancy,” said Alex Olson, vice chairman of the GSB Finance Committee.

“We’re working with the university to try to define the details,” he said.

The student leaders hope to have a proposal ready for the regents to consider at their December meeting, said GSB Finance Director Steve Medanic.

“We want to get this passed through the university as soon as possible, then work on getting tax-free textbooks for everyone so that way Campus Book Store won’t be unfairly competed against,” he said.

If the regents approve the student request in December, students will be able to buy their second-semester school materials without paying tax, Medanic said. Next spring, the student leaders will ask the state legislature for a statewide exemption from taxes on textbooks for university and private outlets.

Seymour said she is in favor of the tax break for both the University Book Store and the Campus Book Store.

“We would really support that the students carry forward and consider including private stores,” she said. “I think it’s great that students are taking an initiative with this, and we would support that. It would truly be a tax break for students.”

Since many Internet textbook companies do not charge sales tax, the tax break would allow the University Book Store to compete more evenly with the online sites.

However, it could decrease competition between the University Book Store and Campus Book Store, said Graham Gillette, spokesperson for Campus Book Store.

“It’s not our place to take a stance on sales tax. It is probably in the students’ best interests, but it’s not our place to ask for that exemption. We just ask that the state-run institutions be held to the same standards that private retailers are.”

The student leaders said they want to work with both book stores to keep options open for students buying books and supplies.

“I think right now the statistics show that a majority of students purchase their books at UBS due to their selection and prices,” Tofilon said. “I think it will take a chunk out of the revenue generated by CBS, and it may make some hardships for them.

“Right now, we don’t plan on CBS being hurt in the long run because we will be pushing tax exemptions for textbooks across the entire state during the next legislative session,” he added. “By getting a tax exemption for students at UBS, we may hurt CBS, but we’re not here to fight for CBS — we’re here to fight for the students.”

Gillette said they are in favor of the tax break, as long as it is done across the board.