The city of Starkville has a 2 percent sales tax separate from the mandated state sales tax of 7 percent. The catch is that only restaurants and bars charge this 2 percent tax.
In other words, the city placed this tax at establishments that Mississippi State University students frequent.
Despite all of the revenue that this tax generates, the university and the students get none of it. All of this money goes to the city in some capacity.
The students should get some percentage of the revenue from this tax since they are the beast of burden for it.
The Student Association has developed a proposal in which the university would get a percentage of this tax back. This proposal is up for review by the city. If accepted, it would bring 25 percent of the 2 percent tax back to the university.
MSU would distribute the collected tax to different departments for use on various projects. One example is the formation of a convention center to help bring concerts, conferences and other events to the city of Starkville.
The 2 percent tax will come up for vote again some time this year. The people will decide the survival of this tax, as long as the Legislature passes it first.
Many students will not vote for the tax if they do not receive any benefits.
The bulk of the tax currently goes to the Parks and Recreation Department, with other parts distributed to other needy areas. The university and the students deserve a percentage of the revenue.
The Board of Aldermen could have placed this tax on all businesses, but they targeted businesses that students use the most. The board did not impose this tax on grocery stores. They focused it on establishments that the older populations of Starkville rarely use.
The most ironic thing about the whole situation is the fact that MSU is largely responsible for Starkville’s growth. As the university has grown, Starkville has grown.
Apartment complexes, neighborhoods and new businesses have been established. The university has made the revitalization of downtown Starkville possible.
MSU would use part of the revenue to expand and maintain the shuttle route that goes through the city. This would assure that students on campus without cars will have some form of transportation for essential errands off campus.
Portions of the revenue would also go to athletics, the Horse Park and the Division of Student Affairs, which would use the money to aid recruiting and the SA.
The acceptance of this proposal will be a major victory for the university and the city. The Convention and Visitors Bureau has already promised the SA $50,000 for the Downtown Music Festival, which featured Pat Green as the headliner last year.
MSU brings in a lot of revenue to Starkville. I hope the Board of Aldermen will have the foresight to see that giving some of the 2 percent tax back to the university would benefit both parties.
All of the university’s plans for a share of the 2 percent tax will have a positive economic impact upon the city, so accepting this proposal is the right thing to do.
It is an investment in the city and it is fair, since the students are responsible for paying most of the 2 percent tax.
Nyerere Tryman is a graduate student in public policy and administration. He can be reached at [email protected].