Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

7 of 10
BACKNEXT
Compliments of the house (but not the state)
Compliments of the house (but not the state)
That free breakfast at Holiday Inn? Might not be free much longer.

In Tennessee, the General Assembly is considering applying the state's sales tax to complimentary meals provided at hotels as part of its "sale for resale" initiative, which would tax items included as part of a service.

Customers would receive their free breakfast, but might be surprised to see a tax charge added onto their bill, if that hotel decides to pass along the cost.

The tax on complimentary meals is projected to bring in $1 to $2 million annually, and "sets Tennessee back in line with the majority of states collecting this revenue," said Sarah Houghland, a spokeswoman for the Tennessee Department of Revenue.

Opponents of the tax argue that meals could actually end up being double-taxed, according to the Tax Foundation, since the cost of providing them is usually taken into account when a hotel determines its room rates, which are already subject to the state's sales tax.

NEXT: Paper or plastic?
Email | Print | Share
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Last updated May 06 2010: 5:38 PM ET
More Galleries
The Obama economy in 10 charts President Obama came to office in January 2009 in the midst of the Great Recession. Much has turned around since then, but he's been criticized for a slow recovery. More
Best Jobs in America CNNMoney/PayScale's top 100 careers with big growth, great pay and satisfying work. More
Top-paying jobs Anesthesiologists take home a median $335,000 in salary and bonus annually. What other great careers from CNNMoney and PayScale.com's list of Best Jobs in America offer hefty paychecks? More

Special Offer