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State trying to tax hotels for `free' breakfasts

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The so-called complimentary breakfasts at many hotels in Tennessee have stirred the appetite of state revenue officials.

The state wants to tax the lodging businesses for the food they offer as part of free breakfasts that are included in their room rate.

The budget-strapped state hopes to get an estimated $10 million for its coffers from the sweet rolls, coffee and such that hotel patrons enjoy at no charge from the the mountains of East Tennessee to Graceland.

The proposal is pending in committees in the General Assembly. The tax would be the prevailing sales tax rate in the county involved - up to 9 3/4 percent.

The Tennessee Hospitality Association, representing hotels, believes the plan is unfair.

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View More: Business_Finance, Food, General Assembly, Hospitality_Recreation, Tennessee, Tennessee Hospitality Association, Usd
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