New York to Tax Online Education
In a move that could have very mixed consequences for students and schools alike, the New York State Department of Taxation and Finance has put forward the notion that online degree programs should be subject to state sales taxes. While it is not yet law, the current economy could make the proposal very enticing for government officials looking for new ways to bring in state revenue -- and, given New York's status as a trend-setter on the political field as much as anywhere else, there is a real possibility that a successful push for the taxation could cause a ripple effect throughout the country.
"State governments are strapped for money, and this represents an administrative ruling that appears to me to broaden the tax base," said Melanie Hill, a tax specialist with Dow Lohnes Price Tax Consulting Group LLC.
"I think it's a sign of our times that states are looking to pick up revenue they haven't before," she added.
On the one hand, the agency is portraying this as a case of taxing educational software -- definitely a common practice, as with most purchasable goods; on the other hand, the access granted to a web page for distance learning doesn't leave the student with a permanent piece of software at the end of the day.
The agency also cites the lack of human interaction as separating online degrees from traditional degrees as more self-help than education (and hence subject to taxation). The possible ramifications of this definition could be severe. Not only do they push toward a redefining of what makes a college education (is human interaction necessary to facilitate true learning?), but taxation could push away potential students at a time when managing tuition is already a struggle.
Taxation on education: a necessary evil in a faltering economy, or just one more roadblock keeping a college education out of reach for everyday people? It's a debate we'll have to stay tuned for in the coming months as New York hashes out its differences.
About The University of Texas at Arlington
- M.Ed. In Curriculum and Instruction - Mathematics Education
- Master of Science in Nursing - Pediatric Acute Care Nurse Practitioner
- M.Ed. In Curriculum and Instruction - Science Education More...
- Veterinary Assistant
- Certified Dog Trainer Instructor Course
- Grooming Instruction
- AA - Healthcare Information Technology
- Diploma - Massage
- AA - Paralegal Studies More...
About Boise State University
Boise State University is a highly respected, public, metropolitan research university offering lifelong learning.
- Master of Business Administration
Work toward your graduate degree with New England College Online.
- Master of Science in Accounting - Forensic Accounting
- MS in Management/Project Management
- Master of Science in Accounting More...
- Bachelor of Science in Respiratory Therapy
- Master of Science in Nursing - Womens Health Nurse Practitioner
- Master of Science in Criminal Justice More...
Change the World with American University
Be a part of something bigger than yourself.
- Master of Science in Measurement & Evaluation
- Master of Science in Nutrition Education
- Master of Arts in Economics - Applied Economics More...
Join the community of thought leaders at University of the Rockies. Pursue your graduate degree from the University’s School of Professional Psychology or School of Organizational Leadership.
- MA in Public Sociology
- Doctor of Psychology, Mediation & Conflict Resolution
- Doctor of Philosophy, Organizational Development and Leadership More...