Author Topic: Tennessee might tax "free" hotel breakfasts  (Read 9115 times)

0 Members and 1 Guest are viewing this topic.

Offline The Village Idiot

  • Banned
  • Probationary (Probie)
  • Posts: 54
  • Reputation: +96/-15
Tennessee might tax "free" hotel breakfasts
« on: March 07, 2010, 08:55:56 PM »
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 Smoky Mountains to Graceland.

The proposal, pending in committees in the General Assembly, is to collect tax on the food at the prevailing sales tax rate in the county involved - up to 9.75 percent.

State officials stress that the businesses would be taxed and not the hungry patrons. Reagan Farr, commissioner of the Department of Revenue, doesn't believe hotels would pass the tax onto consumers.

The proposal is in a much broader tax provisions bill sponsored by state Sen. Jim Kyle of Memphis and state Rep. Mike Turner of Nashville.

http://www.wsmv.com/news/22768853/detail.html


MY QUESTION... if hotels separated the meal price from the room rate... wouldn't the govt lose taxes??
« Last Edit: March 07, 2010, 09:04:22 PM by Chris »

Offline thundley4

  • Hero Member
  • *****
  • Posts: 40571
  • Reputation: +2224/-127
Re: Tennessee might tax "free" hotel breakfasts
« Reply #1 on: March 07, 2010, 09:05:19 PM »
Quote
MY QUESTION... if hotels separated the meal price from the room rate... wouldn't the govt lose taxes??

I would think so. Maybe the state is saying that the hotels should pay the tax based on the value of the free meal.  Hotels should, just lower their room rate, and tack on the same amount for the formerly free breakfast.  That or they could say they charge X amount of dollars for breakfast, but the room is free.  The state would lose even more that way.

Offline Chris

  • Administrator
  • Hero Member
  • *****
  • Posts: 1476
  • Reputation: +522/-16
Re: Tennessee might tax "free" hotel breakfasts
« Reply #2 on: March 07, 2010, 09:05:59 PM »
Democrats.  Go figure.  :bs:
This post is disruptive, hurtful, rude, insensitive, over-the-top, or otherwise inappropriate.

Offline The Village Idiot

  • Banned
  • Probationary (Probie)
  • Posts: 54
  • Reputation: +96/-15
Re: Tennessee might tax "free" hotel breakfasts
« Reply #3 on: March 07, 2010, 09:36:47 PM »
California is now taxing Shipping & Handling.

hah

Offline Lord Undies

  • Hero Member
  • *****
  • Posts: 11388
  • Reputation: +639/-250
Re: Tennessee might tax "free" hotel breakfasts
« Reply #4 on: March 07, 2010, 10:01:54 PM »
Nothing beats the tax on tax:  Sales Tax on Liquor and Cigarettes!

Offline Specbid

  • Sr. Member
  • ****
  • Posts: 670
  • Reputation: +2/-0
Re: Tennessee might tax "free" hotel breakfasts
« Reply #5 on: March 08, 2010, 05:28:00 AM »
Quote
Reagan Farr, commissioner of the Department of Revenue, doesn't believe hotels would pass the tax onto consumers.

Sheesh, 'rats really are effin' stupid.

Offline debk

  • Topic Moderator
  • Hero Member
  • *****
  • Posts: 12473
  • Reputation: +467/-58
Re: Tennessee might tax "free" hotel breakfasts
« Reply #6 on: March 08, 2010, 09:00:29 AM »
TN doesn't have state income tax, so they are looking for money any where they can.

Just hand over the chocolate...back away slowly...far away....and you won't get hurt....

Save the Earth... it's the only planet with chocolate.

"My therapist told me the way to achieve true inner peace is to finish what I start. So far I've finished two bags of M&M's and a chocolate cake. I feel better already." – Dave Barry

A balanced diet is chocolate in both hands.

Offline Lacarnut

  • Hero Member
  • *****
  • Posts: 4154
  • Reputation: +316/-315
Re: Tennessee might tax "free" hotel breakfasts
« Reply #7 on: March 08, 2010, 09:10:38 AM »
If we could just tax politicians stupidity. There is plenty of revenues there.

Offline Chris_

  • Little Lebowski Urban Achiever
  • Hero Member
  • *****
  • Posts: 46845
  • Reputation: +2028/-266
Re: Tennessee might tax "free" hotel breakfasts
« Reply #8 on: March 08, 2010, 10:48:43 AM »
TN doesn't have state income tax, so they are looking for money any where they can.



God forbid they actually cut spending.
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline NHSparky

  • Hero Member
  • *****
  • Posts: 24431
  • Reputation: +1280/-617
  • Where are you going? I was gonna make espresso!
Re: Tennessee might tax "free" hotel breakfasts
« Reply #9 on: March 08, 2010, 11:08:22 AM »
God forbid they actually cut spending.

Isn't TN one of those states which have "universal" healthcare, and now it's driving them into insolvency?
“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.”  -Henry Ford

Offline rich_t

  • Hero Member
  • *****
  • Posts: 7942
  • Reputation: +386/-429
  • TANSTAAFL
Re: Tennessee might tax "free" hotel breakfasts
« Reply #10 on: March 08, 2010, 11:09:03 AM »
God forbid they actually cut spending.

I was just getting ready to say something along those lines.
"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." --Norman Thomas, 1944

Offline ironhorsedriver

  • Sr. Member
  • ****
  • Posts: 533
  • Reputation: +28/-1
Re: Tennessee might tax "free" hotel breakfasts
« Reply #11 on: March 08, 2010, 11:19:06 AM »
At what point does someone finally say enough! Pretty soon the Average American will be lucky to bring home 1/4 of their salary.

Offline Eupher

  • Hero Member
  • *****
  • Posts: 24894
  • Reputation: +2835/-1828
  • U.S. Army, Retired
Re: Tennessee might tax "free" hotel breakfasts
« Reply #12 on: March 08, 2010, 11:25:47 AM »
TN doesn't have state income tax, so they are looking for money any where they can.



Historically, as I understand it, personal property taxes in TN have been fairly reasonable. There is no state-levied property tax. That, coupled with no income tax, a right-to-work state, and a business-friendly corporate tax structure (6% excise tax only, with many aspects of business not being taxed at all), puts Tennessee in a precarious situation.

What they're discovering in TN is, they can't really spend money like drunken sailors, unlike their blue state counterparts in Commiefornia, New Yawk, and similar places. They offset some of that with some pretty high sales taxes -- up to 9.75%, depending on the county. Where I intend to wind up -- Madison County -- they charge the max of 2.75%, in addition to the 5.5% tax on groceries and the 7% tax on everything else. When I go to the grocery store to buy a loaf of bread for $3, almost 30 cents of that goes to the state and local gummint.  :o

It would appear that the TN lawmakers are doing their level best to keep from enacting an income tax. That's a good sign, but can they keep it that way?

From Wiki:

Quote
Tennessee
Tennessee charges 5.5% sales tax on groceries as of January 1, 2008, and 7% on other items. Counties also tax up to 2.75% in increments of 0.25% — most do so around 2.25%. If a county does not charge the maximum, its cities can charge and keep all or part of the remainder. Several cities are in more than one county, but none charge a city tax, thus paying only the county taxes.[100][101]


Personally, I have a problem paying sales tax on GROCERIES. This is an area that should be exempt, IMHO. Ditto for medications and other fundamental necessities. Paying almost 10% of every dollar spent to the state and local government is the price of the highly-touted "no state income tax".

Either way you go, you're gonna pay the piper.  :censored:
Adams E2 Euphonium, built in 2017
Boosey & Co. Imperial Euphonium, built in 1941
Edwards B454 bass trombone, built 2012
Bach Stradivarius 42OG tenor trombone, built 1992
Kanstul 33-T BBb tuba, built 2011
Fender Precision Bass Guitar, built ?
Mouthpiece data provided on request.

Online DefiantSix

  • Captain, IKS Defiant
  • Hero Member
  • *****
  • Posts: 18679
  • Reputation: +1996/-189
  • "Set Condition One throughout the ship."
Re: Tennessee might tax "free" hotel breakfasts
« Reply #13 on: March 08, 2010, 11:27:35 AM »
At what point does someone finally say enough! Pretty soon the Average American will be lucky to bring home 1/4 of their salary.

The vast majority of us are lucky to see between 40% - 50% of what we actually earn at the moment, courtesy of our friendly neighborhood nanny state.

Thanks Republicrats!  :banghead: :bigbird:
"Stand your ground. Don't fire unless fired upon, but if they mean to have a war, let it begin here."
-- Capt. John Parker

"I'm not looking for forgiveness, and I'm way past asking permission"
-- Capt. Steve Rogers

"In this present crisis, government is not the solution to our problem, government IS the problem."
-- Ronaldus Magnus

Offline rich_t

  • Hero Member
  • *****
  • Posts: 7942
  • Reputation: +386/-429
  • TANSTAAFL
Re: Tennessee might tax "free" hotel breakfasts
« Reply #14 on: March 08, 2010, 11:45:38 AM »
At what point does someone finally say enough! Pretty soon the Average American will be lucky to bring home 1/4 of their salary.

This underscores the need to elect honest fiscal conservatives.

We all have to live within a budget in our personal lives, why shouldn't we expect our elected officials to do the same?
"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." --Norman Thomas, 1944

Offline DumbAss Tanker

  • Hero Member
  • *****
  • Posts: 28493
  • Reputation: +1710/-151
Re: Tennessee might tax "free" hotel breakfasts
« Reply #15 on: March 08, 2010, 11:45:58 AM »
This whole idea is about as messed-up as charging extra sales taxes for someone over-eating at a buffet.  You're already paying sales tax on a room-and-breakfast deal (also on top of that, normally some kind of damned room tax, or pay-the-bonds-for-the-arena-or-convention-center tax, or some other frickin' thing if it's in a metro area at all), where the hell do they get off doing this?

As others have pointed out, if the hotel drops the price of the room by three or four bucks and sells the breakfast for that amount, the local government at least takes a net loss on the deal.  What a stupid idea.
Go and tell the Spartans, O traveler passing by
That here, obedient to their law, we lie.

Anything worth shooting once is worth shooting at least twice.

Offline The Village Idiot

  • Banned
  • Probationary (Probie)
  • Posts: 54
  • Reputation: +96/-15
Re: Tennessee might tax "free" hotel breakfasts
« Reply #16 on: March 08, 2010, 12:32:35 PM »
At least a sales tax is paid by everyone, even illegal aliens.

An income tax would be "progressive". blech.

Offline rich_t

  • Hero Member
  • *****
  • Posts: 7942
  • Reputation: +386/-429
  • TANSTAAFL
Re: Tennessee might tax "free" hotel breakfasts
« Reply #17 on: March 08, 2010, 12:37:57 PM »
Quote
At least a sales tax is paid by everyone, even illegal aliens.

That is probably the main reason why I support a national sales tax in lieu of the current federal income tax.

But I'm sure there are parts of the national sales tax that I haven't thought all the way through.
"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." --Norman Thomas, 1944

Offline The Village Idiot

  • Banned
  • Probationary (Probie)
  • Posts: 54
  • Reputation: +96/-15
Re: Tennessee might tax "free" hotel breakfasts
« Reply #18 on: March 08, 2010, 12:40:28 PM »
That is probably the main reason why I support a national sales tax in lieu of the current federal income tax.

But I'm sure there are parts of the national sales tax that I haven't thought all the way through.

Like applying it to homes and cars... lol.. those would be sizable taxes

Offline rich_t

  • Hero Member
  • *****
  • Posts: 7942
  • Reputation: +386/-429
  • TANSTAAFL
Re: Tennessee might tax "free" hotel breakfasts
« Reply #19 on: March 08, 2010, 12:49:39 PM »
Like applying it to homes and cars... lol.. those would be sizable taxes

Yup...  Just like those things.

LOL.
"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." --Norman Thomas, 1944

Offline The Village Idiot

  • Banned
  • Probationary (Probie)
  • Posts: 54
  • Reputation: +96/-15
Re: Tennessee might tax "free" hotel breakfasts
« Reply #20 on: March 08, 2010, 12:57:10 PM »
Yup...  Just like those things.

LOL.


and the guy who said it wouldn't be passed on to consumers is 100% Grade A Moron.

Offline rich_t

  • Hero Member
  • *****
  • Posts: 7942
  • Reputation: +386/-429
  • TANSTAAFL
Re: Tennessee might tax "free" hotel breakfasts
« Reply #21 on: March 08, 2010, 01:00:15 PM »
and the guy who said it wouldn't be passed on to consumers is 100% Grade A Moron.

Companies/Corporations in this country DO NOT pay taxes.

They always pass them along to consumers.  Anyone that thinks differently is a fool.
"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." --Norman Thomas, 1944

Offline debk

  • Topic Moderator
  • Hero Member
  • *****
  • Posts: 12473
  • Reputation: +467/-58
Re: Tennessee might tax "free" hotel breakfasts
« Reply #22 on: March 08, 2010, 01:51:02 PM »
Historically, as I understand it, personal property taxes in TN have been fairly reasonable. There is no state-levied property tax. That, coupled with no income tax, a right-to-work state, and a business-friendly corporate tax structure (6% excise tax only, with many aspects of business not being taxed at all), puts Tennessee in a precarious situation.

What they're discovering in TN is, they can't really spend money like drunken sailors, unlike their blue state counterparts in Commiefornia, New Yawk, and similar places. They offset some of that with some pretty high sales taxes -- up to 9.75%, depending on the county. Where I intend to wind up -- Madison County -- they charge the max of 2.75%, in addition to the 5.5% tax on groceries and the 7% tax on everything else. When I go to the grocery store to buy a loaf of bread for $3, almost 30 cents of that goes to the state and local gummint.  :o

It would appear that the TN lawmakers are doing their level best to keep from enacting an income tax. That's a good sign, but can they keep it that way?

From Wiki:

Personally, I have a problem paying sales tax on GROCERIES. This is an area that should be exempt, IMHO. Ditto for medications and other fundamental necessities. Paying almost 10% of every dollar spent to the state and local government is the price of the highly-touted "no state income tax".

Either way you go, you're gonna pay the piper.  :censored:


Car tags are quite reasonable....unless you have a vanity plate. We only have rear plates and price varies per county and they are $36 for renewal in my county which is about average. Some are less, some are more,depends on what the county determines.

Property taxes are very low compared with other places in the country. Residential is taxed 25% of the "assessed value" (which is done by the tax assessor or the most recent sales price). If within the city limits...it is then $5.50 per $100 of the assessed value. I live in the county, so it's about half of the $5.50. My brother lives in Northbrook IL (Chicago suburb) in a house half the size of mine on less than half an acre lot - our's is just over 3 acres in a gated subdivision - and his taxes are almost quadruple what ours are.

Sales tax, however, is, as Eupher said....on EVERYTHING! and they find ways to tax on top of taxes too. Sin tax is on movie/concert/etc tickets (17%), it's also on alcohol and cigarettes, but I'm not sure what the percentage is now as they keep raising it. It's on phone bills, utility bills, cable/satelite bills, groceries, clothes, Rx's....it's on everything! So far, about the only thing it's not on is doctor bills or personal care like haircuts, manicures, pedicures, etc. .....but for all I know - it's automatically plugged into the price.

I'm charged a yearly "business" tax for being allowed to work in my company.

Sales tax on cars is high, as are deed stamps on property.

The state finds a way to collect it....but it may be more equitable than state income tax. You don't buy the stuff, you don't get taxed for it.
Just hand over the chocolate...back away slowly...far away....and you won't get hurt....

Save the Earth... it's the only planet with chocolate.

"My therapist told me the way to achieve true inner peace is to finish what I start. So far I've finished two bags of M&M's and a chocolate cake. I feel better already." – Dave Barry

A balanced diet is chocolate in both hands.

Offline Eupher

  • Hero Member
  • *****
  • Posts: 24894
  • Reputation: +2835/-1828
  • U.S. Army, Retired
Re: Tennessee might tax "free" hotel breakfasts
« Reply #23 on: March 08, 2010, 03:28:21 PM »
One of the arguments against ridiculously high sales taxes vice income taxes is that the poor are assessed a disproportionately large amount of their available income on taxes because they have to buy the same things (groceries, Rx's, household items) that the more affluent have to.

Property taxes are lower, as Deb said, so buying a big-assed house/mansion doesn't even the playing field that much either. The poor pay rent or pay property taxes on a small house on a small lot while the more affluent have lots of acreage and a multi-car garage.

I like the idea of no income tax, but I'm not keen on the alternative -- ridiculously high sales taxes. When it's time to buy a car, you gotta dig deep just to pay the freakin' state.  :censored:
Adams E2 Euphonium, built in 2017
Boosey & Co. Imperial Euphonium, built in 1941
Edwards B454 bass trombone, built 2012
Bach Stradivarius 42OG tenor trombone, built 1992
Kanstul 33-T BBb tuba, built 2011
Fender Precision Bass Guitar, built ?
Mouthpiece data provided on request.

Offline debk

  • Topic Moderator
  • Hero Member
  • *****
  • Posts: 12473
  • Reputation: +467/-58
Re: Tennessee might tax "free" hotel breakfasts
« Reply #24 on: March 09, 2010, 12:37:33 AM »
One of the arguments against ridiculously high sales taxes vice income taxes is that the poor are assessed a disproportionately large amount of their available income on taxes because they have to buy the same things (groceries, Rx's, household items) that the more affluent have to.

Property taxes are lower, as Deb said, so buying a big-assed house/mansion doesn't even the playing field that much either. The poor pay rent or pay property taxes on a small house on a small lot while the more affluent have lots of acreage and a multi-car garage.

I like the idea of no income tax, but I'm not keen on the alternative -- ridiculously high sales taxes. When it's time to buy a car, you gotta dig deep just to pay the freakin' state.  :censored:


You do dig real deep for the sales tax on the car when you purchase it....on the other hand your license plate tags are quite cheap. They are a nominal flat fee, and not based on the value of your car. Chris may know for sure, but I don't think there is any county in the state that charges over $50 for a regular plate.

You also are going to dig real deep for state tax stamps on the purchase of a home. There's also a tax on the mortgage if one has one.
Just hand over the chocolate...back away slowly...far away....and you won't get hurt....

Save the Earth... it's the only planet with chocolate.

"My therapist told me the way to achieve true inner peace is to finish what I start. So far I've finished two bags of M&M's and a chocolate cake. I feel better already." – Dave Barry

A balanced diet is chocolate in both hands.