RESOLUTION 67

A RESOLUTION TO BE ENTITLED

An act ENDORSING FURTHER SENATE RESEARCH AND ACTION INTO

TAX-FREE TEXTBOOKS

 

Short Title:  Tax-Free Textbook Study Act                                                                             (Public)

Sponsored by:  Senators Mickey (corresponding), Alston, Chaplin, Doucette, Lassiter, McArthur, Parnell, Treasurer Compton;

Secondary Sponsor: Senator Dimond

First Reading:  January 24, 2007                                                    Version Date:  January 22, 2007

Referred to:                                                                                                                           .

 

Section 1.        Statutory Authority.  This resolution is adopted pursuant to the provisions of Article II, Sections 5(d) of the Student Body Constitution, and Chapter 2, Rule 17(c) of the Student Body Statutes.

Section 2.        The North Carolina State University Student Senate hereby adopts the following Resolution:

WHEREAS,   the Constitution of the State of North Carolina, Article IX Section 9, reads "[t]he General Assembly shall provide that the benefits of The University of North Carolina [UNC] and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense"; and,

WHEREAS,   despite this commitment, N.C. State tuition rates for full-time resident undergraduates alone have risen from a mere $948.00 for the 1995-1996 academic year to the current rate of $3,530.00 for the 2006-2007 academic year, an increase of 272.4%; and,

WHEREAS,   above and beyond these tuition expenses, the Office of Scholarships and Financial Aid advises undergraduate students to expect to pay $900 per academic year for course textbooks, and advises graduate students to expect to pay $800 per academic year; and,

WHEREAS,   the financial burden of textbook purchases is amplified by the sales taxes levied on them by the State of North Carolina, adding to an additional $67.50 and $60.00 per year for undergraduate and graduate students respectively; and,

WHEREAS,   textbook purchases are currently tax exempt in the states of Connecticut, Massachusetts, Minnesota, New Jersey, New York, North Dakota, South Carolina, Tennessee and West Virginia, states that include 2 of N.C. State's 16 peer institutions; and,

WHEREAS,   legislation making textbook purchases tax exempt has been introduced and in various stages of passage in the legislatures of Georgia, Texas, Virginia and others, states that include an additional 4 of N.C. State's 16 peer institutions; and,

WHEREAS,   North Carolina, by contrast, merely offers a two-day "tax free weekend" on certain academic items, up to a purchase price limit of $100 for textbooks, and held the first weekend in August when many students are unable to purchase their books for the upcoming semesters; and,

WHEREAS,   many textbooks cost more than $100, making them ineligible to receive the tax-free benefits provided; and,

WHEREAS,   this disparity places North Carolina institutions of higher education at a competitive disadvantage universities in other states, making it comparatively more difficult to lure top students and placing an additional burden on North Carolina taxpayers funding a child's education; and,

WHEREAS,   the UNC President's Advisory Committee on Efficiency and Effectiveness (PACE), in its final report issued November 1, 2006, identified regulatory/tax relief as a potential option to reduce out-of-pocket expenses to students; and,

WHEREAS,   options suggested included amending North Carolina General Statutes (N.C.G.S.) §105-164.13 to exempt textbooks from sales taxes entirely, or amending N.C.G.S. §105-164.13C to remove the sales tax holiday price cap on textbooks and establish sales tax holidays that more closely correspond with the start of the fall and spring semesters; and,

WHEREAS,   despite these suggestions, estimated to save students $4 million annually for a complete tax exemption or $1.5 million annually for lifting the sales tax holiday price cap, the PACE report classifies these options only as "medium- to long-term opportunities" that are not part of the University's current legislative agenda for the 2007 long session of the North Carolina General Assembly; and,

WHEREAS,   the Student Senate supports any efforts to reduce out-of-pocket expenses to students consistent with maintaining a high-quality educational environment, and believes tax-free textbooks should be a high priority legislative item; now, therefore be it

RESOLVED,  that the North Carolina State University Student Senate strongly endorses the suggestions noted in the final report of the UNC President's Advisory Committee on Efficiency and Effectiveness; and be it further,

RESOLVED,  the Senate urges the Student Body President and his delegation to the UNC Association of Student Governments to heavily promote textbook regulatory/tax relief; and be it further,

RESOLVED,  the Committee on Public Affairs, with the advice of the Committee on University Affairs and any Executive Branch personnel as the Student Body President may designate, is hereby charged with producing a report no later than the February 28th meeting of the Student Senate analyzing the plausibility of legislative action on tax-free textbooks during the long session of the General Assembly, including but not limited to qualifying legislation for consideration during the 2008 short session, and identifying next steps for Student Government action.