The state always gets its cut
From the "Oy, New York!" file: WSJ's Jacob Gershman reports today that the state Department of Taxation and Finance has cracked down on a group of Bruegger's stores for, among other things, not collecting tax on sliced bagels.
In the taxation department's interpretation of the state tax code, sliced bagels are subject to sales tax -- but whole (unsliced) bagels are exempt. But get this: a sliced loaf of bread -- not taxed.
The DTF tells CBS6 that it will be stepping up enforcement of such food-related tax quirks.
The Bruegger's group tagged by the state has more than 30 stores across upstate -- including here in the Albany area. The stores have been posting signs telling people about the change. [Biz Journals] [WNYT]
Another thing about Kenneth Greene, the guy who owns the Bruegger's group -- his company baked the world's largest bagel (more than 800 pounds) at the New York State Fair in 2005. [Bigger Impact] [SuperSized Meals]
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Comments
If this is about how a sliced bagel is "prepared food" and an unsliced bagel is not, then I expect an equal and opposite sales tax credit for the salt knocked off my salt bagel by the guy who sliced it. If you argue that salt isn't important enough to amend the sales tax code, I direct your attention to the Everything bagel.
LQ
... said Lou Quillio on Aug 24, 2010 at 11:56 PM | link
I think that particular bit of weirdness has been around for quite a while. It's basically a service tax. My folks run a takeout restaurant and if they cook the food for you, there's tax on it. If you buy it raw, there's no tax. Kinda stupid, IMO. I used to get so many complaints about it when customers got up to the register.
(Oddly, though, the folks doing the complaining would be the ones who had been coming in every week for some 5-10 years and were only just noticing it then. Go fig.)
... said Sally on Aug 25, 2010 at 12:06 AM | link
So does this mean I will be charged tax at Price Chopper at the Bagel Factory in the store there now too?
This is just as bad as when they taxed big marshmallows and not small marshmallows. Cause big marshmallows were considered candy and small ones were considered food.
... said CapHwys on Aug 25, 2010 at 6:18 PM | link
Did they slice the world's largest bagel? I wonder how much that cut would cost them!
So I understand that if I get a bagel full with spread cream, then it could be considered a meal. Similarly, nobody eats sliced bread as a meal.
But if I get my cream separately, plus a bagel and a knife, and eat it in the premises, then I literally just acquired two pieces of food, rented a tool and a paid for temporary service/space. I think each of those should have a different tax levied on them and they should send my assistant an invoice with payment terms. What do you think?
... said Lorne Marr on Aug 29, 2010 at 9:09 AM | link