8/7/2019 2009 Blacksburg analysis of meals tax and Virginia Tech http://slidepdf.com/reader/full/2009-blacksburg-analysis-of-meals-tax-and-virginia-tech 1/5 Blacksburg a sl)ccialjJlczee To: Town Council From: Marc A Verniel, Town Manager Date May 26 / 2009 Re: Meals Tax Collection on the Virginia Tech Campus Background The issue of collecting taxes on the Virginia Tech Campus has been discussed in Blacksburg for decades. In 1983 the Attorney General concluded that "the town does not have the authority to impose upon a State institution the duty to collect the tax and report the purchases of meals." However, while the Town may not be able to compel the University to collect taxes, there is nothing that prohibits the University from collecting local taxes. In 1997, the Attorney General addressed the issue again in the context ofthe City of Harrisonburg and James Madison University. The Attorney General opined that James Madison University's d in in g services were not operated by a private company, so Harrisonburg could not require the company to collect the city meals tax. The Virginia Tech Dining Services Program At Virginia Tech, dining services is an auxiliary of the University and not operated by a third party contractor. It is organized similar to a Town enterprise fund where the operation is fully funded by revenues generated by the dining program. Meal plans at Virginia Tech are organized around "flex plans" and "dining dollars." Rather than having a set number of meals per week on a dining plan, students pay for a meal plan that covers administrative costs of the dining program and are credited with flex dollars on their Hokie Passport. The student can then purchase meals at all-you-can-eat dining facilities or alia cart dining facilities at a discounted rate. Students can also add additional dining dollars to their Hokie Passport and purchase additional meals at the same discounted rate. Both flex dollars and dining dollars are considered part ofthe student's m eal plan and only meals can be purchased with these funds. The Hokie Passport can also act as a debit card for other purchases on campus and at facilities in town that accept Hokie Passport. Flex Dollars and Dining Dollars allow students to receive discounts on their food and beverage purchases, while using cash or the Hokie Passport debit account does not entitle students to those discounts. Dining Facilities There are two all-you-care-to-eat dining centers; D2 in Dietrick Dining Center with eight venues and Shultz Dining Center, in the Upper Quad. There are also nine a la carte dining centers on-campus. These include the West End Market; the Hokie Grill and Co., including franchises Chik-fil-A and Pizza Hut;
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8/7/2019 2009 Blacksburg analysis of meals tax and Virginia Tech
Re: Meals Tax Collection on the Virginia Tech Campus
Background
The issue of collecting taxes on the Virginia Tech Campus has been discussed in Blacksburg for decades.
In 1983 the Attorney General concluded that "the town does not have the authority to impose upon a
State institution the duty to collect the tax and report the purchases of meals." However, while theTown may not be able to compel the University to collect taxes, there is nothing that prohibits the
University from collecting local taxes.
In 1997, the Attorney General addressed the issue again in the context ofthe City of Harrisonburg and
James Madison University. The Attorney General opined that James Madison University's dining
services were not operated by a private company, so Harrisonburg could not require the company to
collect the city meals tax.
The Virginia Tech Dining Services Program
At Virginia Tech, dining services is an auxiliary of the University and not operated by a third party
contractor. It is organized similar to a Town enterprise fund where the operation is fully funded byrevenues generated by the dining program.
Meal plans at Virginia Tech are organized around "flex plans" and "dining dollars." Rather than having a
set number of meals per week on a dining plan, students pay for a meal plan that covers administrative
costs of the dining program and are credited with flex dollars on their Hokie Passport. The student can
then purchase meals at all-you-can-eat dining facilities or alia cart dining facilities at a discounted rate.
Students can also add additional dining dollars to their Hokie Passport and purchase addit ional meals at
the same discounted rate. Both flex dollars and dining dollars are considered part ofthe student's meal
plan and only meals can be purchased with these funds. The Hokie Passport can also act as a debit card
for other purchases on campus and at facilities in town that accept Hokie Passport. Flex Dollars and
Dining Dollars allow students to receive discounts on their food and beverage purchases, while using
cash or the Hokie Passport debit account does not entitle students to those discounts.
Dining Facilities
There are two all-you-care-to-eat dining centers; D2 in Dietrick Dining Center with eight venues and
Shultz Dining Center, in the Upper Quad. There are also nine a la carte dining centers on-campus. These
include the West End Market; the Hokie Gril l and Co., including franchises Chik-fil-A and Pizza Hut;
8/7/2019 2009 Blacksburg analysis of meals tax and Virginia Tech