Gross Pledges Tax Refund

Just four days after saying that the “there is no plan to repeal” a new administration-imposed tax on gifts to student groups, Dean of the College Benedict H. Gross ’71 told Undergraduate Council (UC) leaders this afternoon that groups will be reimbursed for the levy.

In an e-mail to UC President John S. Haddock ’07 and Vice President Annie R. Riley ’07, Gross wrote: “I have spoken with Dean [Jeremy R.] Knowles and Dean [Judith H.] Kidd about the FAS gift tax on student accounts. Although it would be improper for FAS to selectively repeal the tax, I have decided that the College will reimburse student groups for this assessment.”

Gross’s statement directly contradicted an e-mail he sent to The Crimson on Thursday.

“The College cannot reimburse student accounts for the tax,” Gross wrote in that e-mail.

Ryan A. Petersen ’08, who announced the decision at last night’s UC meeting, emphasized that FAS has not agreed to repeal the tax.

“I think it is great that we are finally getting some traction on it, but I don’t think it is the end,” Petersen said. “We need to be sure that the FAS dean and the president of the [University] all realize the discrimination that would be done to undergraduates in our diverse community by the tax’s existence.”

When asked why the College’s approach to the tax had changed over the past several days, Petersen said that Gross “was getting pressured from a lot of us talking to him, and this way he can ostensibly say that the tax is still happening.”

Haddock said that Gross was unclear “about what the timeline would be,” and whether the College will continue to reimburse student groups in the future.

“Ultimately, I hope to see FAS take a fully supportive role of student groups on campus,” Haddock said. “I think when united students make a reasonably case about such a critical issue, University Hall listens.”

Student group leaders were pleased with Gross’ decision.

“I applaud the Dean’s office for taking the initiative, researching it further, and listening to the student organizations,” said Harvard Undergraduate Women in Business President Tracy L. Britt ’07. “It means a lot to us as student groups that the College does respond to matters that affect our organizations.”

Eva Liu ’08, president of Harvard China Care, said that the tax would have directly impeded the implementation of her group’s goals.

“We use the money to sponsor surgeries for orphans so any amount of this that is taken away will mean that there are less orphans that we can help,” Liu said.

The 5-percent tax would have risen to 15 percent within three years. A standing committee chaired by Associate Dean of the College Judith H. Kidd had recommended last week that student groups be exempted from the tax, which is imposed upon all units of FAS. Dean of the Faculty Jeremy R. Knowles, though, told The Crimson last week that the tax would stand.

“As Dean I should not (by making such exceptions) micro-manage the major units of the FAS,” Knowles wrote in an e-mail.

The decision comes as a political victory for Petersen on the eve of voting for the UC presidential election. Petersen, who led the council’s tax-relief advocacy, is running for president against five competitors, including Tom D. Hadfield ’08. Hadfield has previously lambasted the UC’s lobbying effort: “The current approach of asking administrators nicely is not working,” Hadfield said Wednesday.

—Alexander D. Blankfein contributed to the reporting for this story.

—Rachel Nolan contributed to the reporting for this story.