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Tennessee wants to tax complimentary hotel breakfast
Just how important is breakfast? Nutritionists say it's the most important meal of the day - the Tennessee government says breakfast is the most revenue-generating meal of the day. Seems some local politicians are looking to tax the free breakfasts offered to guests get at Tennessee hotels.New tax legislation currently in committee in Tennessee proposes a tax on the complimentary breakfast served at most hotels in the state. The rationale? Those in favor of the bill say it could raise as much as 2 million dollars in revenues. However, officials are quick to point out the new tax wouldn't necessarily impact the hotel guest. The tax would be paid for by the hotel, unless the hotel decides to pass on the cost to their customers.
What are the chances the bill becomes reality? We'll wait and see, and in the meantime we suggest you stock up on the free rolls and danishes.
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Filed under: North America, United States, Hotels and Accommodations
Reader Comments (Page 1 of 1)
BrianM Mar 10th 2010 9:59PM
Isn't there already hotel taxes, occupancy taxes, etc that are passed on to guests. This really is a crock of caca that will just end free breakfasts.
Shellie Anne Mar 11th 2010 7:39AM
Its called a MEALS TAX and it is already enforced in our little town, and as a B&B we have been required to pay it all along. I have fought it for years and said, NO GUEST HAS EVER PURCHASED BREAKFAST HERE. It is complimentary, as is coffee, sodas, afternoon refreshments - take it or leave.
The town attorney is still looking into it, so I have to fill out the form to pay monthly taxes - sales tax, lodging tax and this meals tax. On the form I put 1 cent per guest per meal.
In the beginning, I mean it is ridiculous - you can't charge a guest a tax on something they are not paying for. and how much? How much is this free breakfast?
They need to back off. Lodging establishments are going under, people losing their income right now, they need to support them, not hike their taxes!
Elmo Mar 12th 2010 7:05AM
I've lived in Tennessee all my life. We are the most ridiculous state for taxation. No one wants to cut spending and all want to keep adding programs and unfunded mandates. Our sales tax is already almost 10%. By the way, the state defines Sales Tax as "use" tax. Even if you buy from another state or country, or internet, by law you are required to pay TN sales taxes, because you will be "using" the product in TN. I bet this state spends more money trying to prosecute out of state Internet companies than they gain in revenue. In the next few years, it will most likely become illegal to buy anything from outsside of the state. But we don't have a State Income Tax...yet.
Elmo Mar 12th 2010 7:08AM
By the way, you know in TN all motels are already subject to both state and local excise taxes. The State of TN already gets from $14 and up every night you stay. Then there's the local 6.5% added to that. And no owner is going to pay this for you - just to get your business.
usapaydirt Mar 12th 2010 7:21AM
What planet were these fools born on! If the citizens allow this, then their really no different than the fools they voted into office. If nothing is sold then it cannot be taxed. This is exactly the kind of greed that let to fester, is slowly destroying America !!!!
dsherline Mar 12th 2010 7:23AM
The committee who thought this up is either extremely greedy, extremely stupid, or an unfortunate combination of both. The hotel has already paid taxes on the product. If the hotels are given the choice of paying this new tax themselves or passing it on to the customer what does anyone think is going to happen? Is the projected 2 million in revenue going to make that much of a difference in the state's coffers?