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Tennessee Takes Heat for Proposing Tax on Free Breakfast

The lukewarm coffee and stale bagels that mid-priced hotels tout as "continental breakfast" have fueled a tax firestorm in Tennessee.

Tennessee hoteliers have united in opposition to a new proposal to collect tax on the food they purchase for their free breakfasts. The state maintains the proposal is intended to counteract a legal decision that made Tennessee an "anomaly" by creating a sales tax exemption for hotels.

"Tennessee is not seeking to do anything groundbreaking or revolutionary," Department of Revenue commissioner Reagan Farr says.
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