Phoenix
24th August 2010, 05:53 PM
http://www.nbcnewyork.com/news/business/Bagels-With-a-Slice-of-Tax-101374809.html
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
AP
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.
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
AP
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.