Senate Resolution #17

TEXTBOOK SALES TAX

Sponsor: Roque Manzanares

Weber State University

A RESOLUTION OF THE UTAH INTERCOLLEGIATE ASSEMBLY RECOMMENDING THE UTAH STATE LEGISLATURE AMEND UTAH CODE ALLOWING FOR THE EXEMPTION OF SALES TAX ON TEXTBOOKS PURCHASED BY COLLEGE STUDENTS, AND THE DEFINITION OF "TEXTBOOK" BE EXPANDED TO INCLUDE MEDIA CURRENT WITH HIGHER EDUCATION LEARNING FORMATS. UIA RECOMMENDS THE AMENDMENT READ TO THE FOLLOWING EFFECT:

This act affects sections of Utah Code Annotated 1953 as follows:

AMENDS:

59-12-104

59-12-104.5(1)(d)

Be it enacted by the Legislature of the state of Utah:

Section 1. Section 59-12-104 is amended by adding a new paragraph 48 to read:

(48) Textbooks purchased by full and part time college student for their courses; provided that upon purchase the student shall present a valid student identification card, the purchase must be made on campus or on the premises of such educational institution and such a textbook shall be required or optional as listed by the instructor of the course which is offered at such institution of higher education. The commissioner shall publish those rules and regulations necessary to provide for an exemption from sales tax if the educational institution does not have a bookstore or if the student must purchase the text elsewhere due to unavailability on campus.

(a) A "textbook," for purposes of this section shall mean any book, supplementary text, or book substitute, which shall include but is not limited to, hard covered or paperback fiction or non-fiction books, work books, manuals, almanacs, general purpose dictionaries or encyclopedias, maps, atlases, magazines, newspapers, audiovisual materials, art reproductions, or sheet music which a student is requested to use as a text, supplementary text, or a text-substitute, in a particular class or program in the school the student legally attends.

(b) "institution of higher education" shall mean any institution or higher education recognized and approved by the Utah Board or Regents.

Section 2. Subsection 59-12-104.5 (1)(d) is amended to read:

(1) The Tax Review Commission, in cooperation with the Governor's Office and the State Tax Commission, shall conduct a review of the following sales tax exemptions and related issues created in Section 59-12-104 within the following period of time:

(d) subsections 59-12-104 (10), (11), (14), (19), (25), (26), (27), (28), (32), (33), and (48) before October 1, 1996, and every eight years thereafter;

WHEREAS, financial concerns for college students are starting to mount and the proposed bill will have a direct positive impact on improving student's financial situation and;

WHEREAS, college textbooks are very expensive, an average student is required to buy more than $200 in books per semester and;

WHEREAS, current tax law already provides for sales tax exempt textbook purchases for high school students and;

WHEREAS, students have become increasingly apathetic toward governmental affairs. An increase in student voters can be expected by addressing immediate student issues and;

WHEREAS, Utah's economic goals depend on having a better trained workforce and;

WHEREAS, income tax has become the states main revenue source recently passing sales tax revenue. The state would is still assured income tax revenue from students because and increasing number of students are working part or full-time to finance school, family, or both. Also, future income tax revenue can also permanently increase by helping a student get better educated now.

THEREFORE BE IT RESOLVED that the Utah Intercollegiate Assembly recommends the Utah State Legislature amend Utah Code allowing for the exemption of sales tax on textbooks purchased by college students, and the definition of "textbook" be expanded to include media current with higher education learning formats.