University owned Redzone stores forced to close

[Diehard Ute]

So, the legislature is forcing the closure of the Redzone stores as they "unfairly" compete with private business.

This is rumored to have come from pressure brought by Greg Miller, who if course owns Fanzz (which have a horrible Ute selection)

Apparently you can only have the government sell things like alcohol in Utah

http://www.sltrib.com/sltrib/money/57461702-79/stores-audit-private-utah.html.csp

[U-Ute]

So, the legislature is forcing the closure of the Redzone stores as they "unfairly" compete with private business.

This is rumored to have come from pressure brought by Greg Miller, who if course owns Fanzz (which have a horrible Ute selection)

Apparently you can only have the government sell things like alcohol in Utah

http://www.sltrib.com/sltrib/money/57461702-79/stores-audit-private-utah.html.csp

I would be interested in seeing how they determined that it was somehow unfair. The story is woefully short on details.

The only thing I can think of is if the state funds given to the U by the legislature was somehow directly being used to subsidize the stores.

[Diehard Ute]

I would be interested in seeing how they determined that it was somehow unfair. The story is woefully short on details.

The only thing I can think of is if the state funds given to the U by the legislature was somehow directly being used to subsidize the stores.

The audit determined (from previous articles) that the board of regents does not allow competition with private enterprise, and thus the stores were violating the policy.

The legislator who started this said if the board of regents didn't stop this, he would as he does not feel government entities should have revenue streams that could hurt private business.

The new rules, which effectively keep the U from doing advertising, will put the stores out of business.

I'm curious to see if this stops the athletic department from advertising, as the rules restrict advertising to using the university's website and social media accounts and only allow targeting prospective students, alumni and faculty.

(I'd also love to hear how they justify the monopoly on liquor sales...regulation can occur without a government entity hurting private business. Right?)

[Rocker Ute]

There are a million things school do that compete with private industry... Such a bizarre place to draw the line.

[Mormon Red Death]

The audit determined (from previous articles) that the board of regents does not allow competition with private enterprise, and thus the stores were violating the policy.

The legislator who started this said if the board of regents didn't stop this, he would as he does not feel government entities should have revenue streams that could hurt private business.

The new rules, which effectively keep the U from doing advertising, will put the stores out of business.

I'm curious to see if this stops the athletic department from advertising, as the rules restrict advertising to using the university's website and social media accounts and only allow targeting prospective students, alumni and faculty.

(I'd also love to hear how they justify the monopoly on liquor sales...regulation can occur without a government entity hurting private business. Right?)

Shouldn't they close the book store?

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[LA Ute]

There are a million things school do that compete with private industry... Such a bizarre place to draw the line.

I wonder if this state legislator is a member of the Cougar Club?

[Diehard Ute]

Shouldn't they close the book store?

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And the hospital owned Starbucks?

[USS Utah]

I would be interested in seeing how they determined that it was somehow unfair.

They don't pay income taxes.

"The U. doesn’t pay income tax on its Red Zone profits, the report said."

[Diehard Ute]

They don't pay income taxes.

"The U. doesn’t pay income tax on its Red Zone profits, the report said."

If you read the audit this is not because they're owned by the U

They merely have done what private business is allowed to do and combined losses and gains which has removed any income tax that would be owed through legal deductions. The audit made it clear it was the same thing private taxpayers do.

[Diehard Ute]

So, in reading the audit they made distinctions.

They believe on campus services do not violate any rules because that's an expected service of the university.

They also believe that incidental sales on campus to visitors are fine.

They've also made exceptions for things such as athletic events and medical care.

Ironically this audit also targets the University Guesthouse (on campus hotel that's an amazingly good thing for people with family at U Med or PCM)

And Rice Eccles Stadium leasing the tower for weddings etc. the irony being when RES was built the state mandated it be self sufficient by leading space out to make money.

[Diehard Ute]

I wonder if this state legislator is a member of the Cougar Club?

I don't believe so. His degree is from the University of Phoenix.

However, he's not exactly known for his fair play.

He and his family own ABC Child Development. A private for profit daycare with 8 locations.

In 2011 he began leading the charge to eliminate government programs such as after school care and in school daycare because the government was unfairly competing with private for profit businesses. He vehemently denied any conflict of interest.

Supposedly he ordered this audit after finding out Dixie University was leasing their TV Production truck for non government use.

[Diehard Ute]

It should also be noted the audit looked at sales taxes

The U paid sales tax even on sales of things such as computers to students, which according to the Tax Commission they are not required to do.

Weber does not charge tax on computers to students.

BYU hardly charges tax on anything sold to faculty/students/staff at their store as they also qualify as tax exempt despite being a private institution.

Of all such institutions in Utah, BYU is avoiding the most taxes, by far. (Yet this audit went on to suggest state schools should be more highly regulated when it comes to taxes)

[USS Utah]

If you read the audit this is not because they're owned by the U

They merely have done what private business is allowed to do and combined losses and gains which has removed any income tax that would be owed through legal deductions. The audit made it clear it was the same thing private taxpayers do.

Thanks for the clarification.

[Diehard Ute]

Thanks for the clarification.

No problem.

The article certainly tried to infer it was based simply on being owned by the U