Bagels With a Slice of Tax Little known tax clause boosts prices for New York bagels Updated 1:03 PM EDT, Tue, Aug 24, 2010
Have you noticed bagel shops tacking on a few more cents to your beloved pumpernickel and cream cheese? Blame Albany.
Bagels – however you slice them – most likely haven't been subject to tax at your favorite neighborhood shop. But, desperate for cash, Albany began enforcing a little known clause in its sales tax code that calls for a tax on sliced bagels or whole bagels consumed at the place of purchase, according to The Wall Street Journal.
When an audit found New York chain Bruegger's Bagel in violation of this often unenforced clause, the state demanded owner Kenneth Greene cough up a "significant" amount in taxes to cover what the state figured he owed, according to the Journal.
Customers bristled at the additional charge – roughly 8 cents a bagel -- blaming the franchise for trying to squeeze every penny out of patrons in a tough economy. The backlash prompted Greene to post signs near the cashiers explaining the cost increase.
"New York State is requiring that all sliced bagels and all food eaten on our premises be taxed. We apologize for this change and share in your frustration on this additional tax," the signs read, according to the Journal.
Bruegger's appears to be the only major franchise cracked down on thus far, and Florence Wilpon, one of the founding owners of Manhattan's Ess-a-Bagel, told the Journal she hoped it stayed that way.
In the meantime, a spokesman for the tax department told the paper the state "will provide additional guidance via our Web site and publications in the near future."
Earlier this month, the state passed one of its latest budgets ever to contend with a $9.2 billion deficit. The budget included hikes on cigarette taxes, eliminating the sales tax emeption on clothing and shoes costing under $110 and slicing charitable deductions for New Yorkers making $10 million a year in half, among other clauses.
Bruegger's should file a lawsuit for being unfairly taxed as other stores selling and serving bagels pay no such tax. Typical NYS, never cut spending just levy another tax on the residents and businesses and the state wonders why people and businesses are leaving in droves.
So does that mean that if we go to price chopper and ask them to slice a loaf of their rye bread............they tax us?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
No. They are not taxing for sliced bread. Once you slice a bagel, put something on it and eat in the establishment it takes on restuarant status. I don't see this as new. I am quite familiar with this.
Bottom line is the Albany is enforcing a law wasn't being enforced and now the shops are just passing the tax onto it's customers. Call it what you want it's just another tax placed on NYS residents by our politicians. Is there no end to what these tax and spend clowns will do. Remember in November.
That is BS. I owned a shop next door to Brueggers and I WAS PAYING the tax and that was almostten years ago. Maybe Breugger was getting away with it. You would be wrong on this issue.
Right out of the article Boom. Albany began enforcing a little known clause in its sales tax code that calls for a tax on sliced bagels or whole bagels consumed at the place of purchase, according to The Wall Street Journal.
All I can tell you is that I WAS paying the tax and that is almost ten years ago. Brueggers was located right next door gto my place. Again-maybe Bruegger's had been avoiding it or pyaing somebody off to avoid it.. But I am out of here in ten minutes to go find out.
Shadow--ok I went over to Brueggers--the tax I was paying they too paid. If they do anything that "adds a service" like slicing or even eating a bagel IN the building instead of OUT, you have to charge the tax. The service provided is you gave folks a place to sit. They have bread in there but say they dont slice bread. Rip-off
Anything that moves, breathes or can be sliced will be over taxed by these out of control Democratic morons. They can do to the bagel sellers what they did to tobacco shops. Another who for Governor?
If they do anything that "adds a service" like slicing
So again........if I go to price chopper and buy a loaf of rye bread, I don't pay tax on it...correct?
BUT, if I ask them to slice it, hence 'adding a service', should the loaf of rye bread be taxed?
Is this a 'bagel tax' or a 'service tax'?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Logged
Anything that moves, breathes or can be sliced will be over taxed by these out of control Democratic morons. They can do to the bagel sellers what they did to tobacco shops. Another who for Governor?
