University student Emma Kantrowitz peruses for textbooks in the University Book Center.
As the nation’s leaders scramble to avoid the looming sequester’s massive cuts, local lawmakers are considering a measure of their own that would save students the equivalent of a dining hall meal by exempting textbooks from sales tax.
Legislators have been working for years to lighten the financial load for students, but the price tag of two bills proposed in this session remains an obstacle for their proponents. One measure would exempt textbooks from sales tax for two-week periods before the fall and spring semesters, while another would make them exempt year-round. The bills may offer just a small pittance for students who have seen the cost of tuition rise at a rapid pace over the last couple decades, but Del. Mike Smigiel (R-Caroline, Cecil, Kent and Queen Anne’s) said for students, any help is welcome.
“Some of those textbooks could be quite expensive. When you’re getting into $100 to $200 for a textbook, that’s a dinner — a couple boxes of ramen noodles,” he said of the sales tax. “No matter what it is, it adds up.”
This state has often drawn praise for either freezing tuition or keeping the increases minimal, but this kind of textbook legislation lags behind progress made in Virginia, West Virginia, Pennsylvania and New Jersey, all of which have enacted some law exempting such purchases.
“I don’t understand why — if we claim to be trying to make college less expensive for students — why would we possibly charge them a tax on the textbooks?” Smigiel said. “It seems like a very easy way of reducing costs for college students.”
It may still be difficult, however, to pass the measure. Both bills carry hefty price tags as a result of lost tax revenue; the tax-free period law would cost the state $6.3 million in the first year, while the year-round version would cost $7.8 million. Both costs would climb with each year, according to estimates by the state’s Department of Legislative Services.
Zach Cohen, University System of Maryland Student Council chairman, was skeptical of the DLS estimates and said it inflates the actual cost to the state.
“It’s really difficult to estimate how many people would take advantage of the tax holiday,” Cohen said.
The DLS projections are based on the assumption that 32.5 percent of students will purchase textbooks in a manner that doesn’t require them to foot the 6 percent surcharge.
While both bills have overlapping support from lawmakers, Del. Sheila Hixson (D-Montgomery) said it would be easier to get the tax-free period bill through first and then try to pass a year-round exemption.
“I think we’ll have to do it as almost a pilot program before we can do it full time,” Hixson said.
As with state sales taxes on alcohol and cigarettes, the concern of losing in-state business to more attractive out-of-state options has also reared its head in the debate.
“If you don’t have an incentive to go purchase your books online and go out of state, then you may stay here, buy it from the Maryland store, not have to pay the tax on that, and maybe then you buy a computer or pencils, pens and the other things that are ancillary to the book purchase,” Smigiel said. “I think it’s a good thing if we give an incentive to shop here.”
Though the Internet has become a more attractive marketplace for students purchasing textbooks, Cohen said taking away the surcharge could be good for local business.
“The fact that not only it is more convenient that you don’t have to leave your apartment, but it’s 6 percent cheaper off the bat, is a huge disadvantage for local businesses,” Cohen said. “I think the bill is good for students, it’s good for businesses.”
After several years of introducing the bill to no avail, it still has yet to be seen if this will finally be the year. Working in its favor, however, is more wiggle room in the state budget.
“The budget isn’t as tight as it has been in the past, so we have some flexibility,” Hixson said.