Hospitality Industry Takes Another Hit via Breakfast Tax

03/08/2010

UPDATE: I had to change the original news story I linked to on this post. (see below) In the space of just a few hours of it being mentioned on talk radio, the article at wsmv.com was pulled. Probably just a coincidence.

We’re on a “roll” today, aren’t we? I haven’t blogged this much…well, EVER! There’s just so much happening out there to report on and here’s yet another interesting “tidbit”!

Don’t you just love the free breakfast you get at some hotels when you travel? It’s one of the niceties the hospitality industry has almost turned into a norm. Some of us choose which hotel to stay at based on whether they offer the breakfast or not. I stayed at one hotel recently where the lady in charge looked like my Gramma. She ran around making sure everyone was happy, refilled the oatmeal, etc. She reminded me of the lady in the cafeteria in grade school that everybody loved!

Well, goodbye Gramma! The State of Tennessee has introduced legislation to tax hotels on the free breakfast food. It’ll be taxed at the prevailing sales tax rate of the county involved. In some parts of Tennessee, that’s upwards of 9% now.

The Commissioner of the Dept of Revenue doesn’t believe hotels will pass the costs along to consumers. Hmm, I wonder what they’re supposed to do?

You can read more about this story here.

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