To slice or not to slice: The bagel-buyer's dilemma in New York

[marmar]

Forget about a tax cut. The state is now imposing a tax on cuts.

A recent audit by the state Department of Taxation and Finance (DTF) slammed 33 Bruegger's Bagels franchises for failing to charge sales tax on sliced bagels. Unsliced bagels are exempt.

The audit also found that Bruegger’s failed to charge tax on meals consumed on the premises.

The state slapped the owner with a hefty bill for back taxes and demanded that he begin collecting.

In response, Brueggers posted a sign at its registers which reads: "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 of this additional tax."

DTF spokeswoman Susan Burns said her agency was in the process of preparing a "food bulletin" to remind all restaurateurs of their sales tax collection obligations. For the most part, foods consumed in an eatery's dining room are taxable while those taken "to go" are exempt. .............(more)

The complete piece is at: http://www.cbs6albany.com/articles/bagels-1277702-tax-audit.html

[InkAddict]

1. Why this takes the cake...

Slicing bagels is a dangerous business and could cost the workers/owners far more in work-related injuries via emergency room visits for serious lacerations...just sayin'that perhaps Brueggers SHOULD put the onus for slicing on consumers, take-out or no. whoever they be???

Clearly, a bagel chain understands the tax rules of NY...Are they taking a political tea-bagging stand to withhold lawful taxes????

[Danger Mouse]

2. I hate my state sometimes. Bunch of penny pinchers.

[Lance_Boyle]

3. Seriously? There's no tax on carry-out?

I was always charged the same amount for a pizza whether I carried it out or ate it in the restaurant when I lived in NYC. I wonder if I can sue to reclaim the taxes I apparently overpaid on all those carry-outs?

[zipplewrath]

4. Carry out bagels

Pizza is a prepared food and is taxed regardless of where you eat it. A bagel is considered an "ingredient" or unprepared food. Yeah, it's mostly a bit of successful lobbying. States often exempt "food" from sales tax, but they have regulation laden definitions on what counts. Candy and soda don't count. Fruits and vegetables do. "Prepared" foods are usually taxed, such as pizzas and sandwiches. The cooked chicken at the grocery store is taxed, the uncooked one is not. Bread is not taxed, and sandwich is. A bagel, not sliced, is treated like a loaf of bread. A sliced bagel is treated like a sandwich. If you eat it at the store, that's taxed like a restaurant. If you take it home to make a meal, it is considered food.

It doesn't always make sense, but regulations are like that. What until you find out how all the HCR regulations work. They'll make about as much sense.

[Lance_Boyle]

5. Insanity!

Pizza is merely an ingredient in my recipe for pizza, saliva and beer hash.

[zipplewrath]

6. Good intentions meets reality

It is a perfectly good intention, not putting a tax on food. It's a popular idea until folks realize that could include beer, candy, and Big Macs. So then the government makes lists of what is exempt, and what is not. You know what comes next. Lobbyists.