The Tennessee ConserVOLiance

Hotels: “Not the right time” for tax on free breakfast

A chance to start the day at the breakfast bar inside Country Inn & Suites Cedar Bluff is one of the ways the west Knoxville hotel gets customers to stay the night.

“Complimentary breakfasts are a big draw. A lot of people travel and want their breakfasts included in their rate. That’s what we do,” said Country Inn and Suites Cedar Bluff General Manager Joe Valentino.

Who comes up with this stuff? Seriously!

Though all their hotels offer free breakfast, the meals’ cost get reflected in the room rates. The complimentary breakfasts cost his company more than a thousand dollars a week.

“[It costs] four to five thousand dollars a month for your typical focus-service hotel,” Valentino said.

That price tag may soon increase.

Ok, first off, there is really no such thing as a “free lunch”. Or, in this case, “free” complimentary breakfast. Does it not occur to the bozo who came up with this not so bright idea that the cost of the food is already added into the cost of the room, and therefore, has ALREADY been taxed.

State lawmakers are considering a bill that would add sales tax to the free breakfasts.

Valentino points out that his company pays sales tax when the food is bought.

The proposed legislation would also tax it when it’s eaten.

Are they going to tax it when it comes out, as well as goes in? Oh, wait a minute. They already do that too! Every time you flush, you are paying tax on the utilities, etc.

According to the Tennessee Department of Revenue Commissioner Reagan Farr, “This proposal prevents erosion of our sales tax base because of judicial decisions and sets Tennessee back in line with the majority of states collecting this revenue.”

You mean Tennessee is suppose to double, and triple tax visitors to the state? Oh yeah, makes LOADS of sense. Will bring right on in, won’t it. Big business when you tax your average family heading to Dollywood, into having them rethink their plans.

Farr says he doesn’t expect the cost will affect consumers, but industry insiders say the opposite.

“It has to be passed on to the consumer. You can’t continue to absorb those costs or you’re out of business,” said Knoxville Tourism Alliance Executive Director Jill Thompson.

Since I’m one of those people who never eats the “free” breakfast, do I get taxed too? Why? I’m not making use of the food. Why should I pay an extra tax?

Thompson argues the added sales tax would soften the state’s competitive edge in the tourism industry, and at the very least, would pose new challenges to companies like Valentino’s which have already taken an economic hit.

The whole country is taking an economic hit. It’s affecting how people travel, and take vacations. They are staying closer to home. Add more taxes, and you might find people, not only staying closer to home, but at home.

“This is not the right time to do it. I don’t think there is a right time to do it. This will definitely impact decisions we make in the future,” Valentino said.

You can NOT tax your way into prosperity! I keep trying to talk the Mr into heading to Gatlinburg for a few days, or maybe a week. Lots to see over that way, and it’s really pretty. If we have to pay an extra tax at the motel, I’m rethinking my harassment about this. He’ll be pleased.

UPDATE: Ooops! Forgot to add important links.  Find here.

Cross posted at An Ol’ Broad’s Ramblings.