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
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
Cool cars from the New York Auto Show These are some of the most interesting new models and concept vehicles from the Big Apple's car show. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.