LSU Could Owe $750,000 in Meal Plan Back Taxes
Louisiana State University may owe $750,000 for three years of back taxes for meal plans, the Daily Reveille reports. For years, LSU and other schools in the state enjoyed a special meal plans exemption from the 4 percent sales tax, but some time ago, the state legislature suspended that exemption. No one at the schools noticed—until now.
"I was shocked," LSU's associate vice chancellor for accounting said. "Now we have this huge tax bill we were told we weren't going to have."
Colleges will start charging the 4 percent sales tax on meal plans in January. The tax will cost current LSU students an extra $37.50 for the spring semester, but officials say it is impossible to track down students from previous years. The university may end up having to pay those costs.
Meanwhile, the University of Louisiana system says the private food-service providers—Aramark, Chartwells, and Sodexo—should be liable for the back taxes. "We're not the provider of the service," [the UL system vice president for business and finance] said. "We're not providing the food."
Tags: colleges | taxes | Louisiana State University
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U of A v. ZonaBucks
As an attorney and a parent of a current U of A student, the comment about ZonaBucks and the referenced newspaper article caught my attention.
My research indicates that the U of A has a trademark for the word ZONA with reference to clothing and novelties...and not for meal plans. In addition, based on the fact that the U of A has "allowed" numerous businesses in Tucson to use the word ZONA in their names, not to mention the school's colors, the U of A has in reality abandoned its "trademark."
From what I have heard and read, it appears that the U of A basically strongarmed ZonaBucks into changig its name. The legal costs of fighting U of A would have destroyed a fledgling company. It appears, that the U of A was scared of a competitor, plain and simple.
In looking at the ZonaBucks' network, it appears a lot stronger than the school offerings. Having two supermarket chains and a major drugstore chain makes the ZonaBucks' plan better just right off the bat.
The U of A should be ashamed at what they pulled on their own students. The newspaper article told it like it is, not punches pulled.
Someone should look into how the U of A is doing business.
University Of Arizona
The University of Arizona has an "on campus" meal plan which is basically just a fast food court. Papa John's, Panda Express...
If you use the school's meal plan, you don't have to pay state sales tax.
What I find interesting is that the prices charged are higher than those charged by the same franchise off campus. Sort of like prices in an airport. So the student saves tax but is overpaying in the first place.
The other day in the Arizona Daily I read an interesting story about two students who started an "off campus" meal plan in Tucson. The article tells how the U of A tried to stop this business. Obviously the school was afraid of a competitor. Looking at the ZonaBucks.com website it appears that the students have a far superior lineup to the schools' offerings and it is much more diversified, including supermarkets and drugstores to a roster of restaurants. The site also advises that the merchants in the prgram provide students with discounts.
It seems to me that the U of A by not charging sales tax, has something that should be looked in. Why should the merchants off campus have to compete against an entity that doesnt charge taxes? Doesn't seem just quite fair.
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