University of Virginia Library

'Go Home And Be Good'

Tax Contradicts Godwin

Governor Mills Godwin's
statement that "students should go
home and be good" asides that
every student here should take
pride in the fact that he can
become a good citizen of Virginia.

This apparent contradiction is
proven by contrasting the
Governor's words, which are only
words, with what the state deems
appropriate action, sending tax
forms to the students - tax forms
for capitalization tax, car and
property tax, and state income tax.
It is reassuring to know that we are
indeed entitled to participate in
furthering Virginia's well-being.

May 1 is the deadline to pay
your state and local taxes, or else
"severe penalties, civil and criminal,
are provided by law for failing to
file or for filing a fraudulent
return." This is justified because,
we are told in the instruction for
form 760, "the complying majority
have a right to expect, and they do
expect, that the non-complying
minority should be encouraged and
compelled to comply also." Having
disposed of any objection to paying
them contrary to the wishes of the
majority, the state still manages to
present the student with a unique
batch of situations for wondering
what's going on.

The income tax, for example, is
small enough, only two per cent.
What it lacks in amount it makes up
for in scope, however, for it is
applied to all income whether or
not you live in Virginia or made
your money in Virginia. If you
made any income during the
preceding year in this state, you
must pay income tax on everything
you made that year.

The principle behind this is,
again, an age-old principle of
democracy - to allow as many
people as possible to participate in
the state's welfare. The tax,
therefore, is applied to out-of-state
students for their entire income
behind an interesting facade known
as "actual residency." What it
means is that if you reside in this
state for 183 days, you are an
actual resident even if your legal
residence, i.e., home is another
state; you are then entitled to pay a
tax on all your income, whether or
not you pay a tax on all your
income th your home state as well.

This dual taxation is indeed a
problem, and the instructions deal
with it specifically: "If the other
state also taxes him on his entire
income, and if he desires to avoid
multiple taxation, his only recourse
is to make his (legal) residence and
his actual residence one and the
same" - In other words, move: a
prospect not likely for most
students.

The tax is small, and one may
argue that out-of-state students
should pay extra for the privilege of
living here. The unfortunate part is,
however, that the tax discriminates
against the out-of-state student.

There is a $1,000 deductible
clause; most in-state students with
Virginia's low wages, do not make
enough to have to pay the tax, and
escape, even though they live here
all year.

Out-of-state students, on the
other hand, and particularly form
the northern states, earn higher
wages, and pass the deduction
range. So an out of state student
might earn $200 from jobs during
school in Virginia, and $1,200 in
construction over the summer at
home. He ends up paying an
aggravating $7 after deductions,
while his in-state roommate gets a
refund.

It adds up to a small bonus for
the state coffers for each
out-of-state student who works
hard in the summer to make
enough to afford his out-of-state
tuition.

There are other taxes, such as
the personal property tax on your
car (even if it is registered in your
father's name and he pays tax on it
at home) that bolster the income
tax in proclaiming each student's
membership in the state. It would
be disconcerting for those
out-of-state students, who cannot
even change their residence to pay
in-state tuition or vote here, to be
denied their just democratic part in
this state's welfare.

So at tax time, when the chips
are down, the state welcomes with
suddenly open arms the citizenship
of all the University's students. All
this despite the seeming hostility of
the Governor.