New Yorkers pay a weird tax that they don’t even know about
'27.01.2021'
Vita Popova
New York State has different laws, sometimes very strange. One of them involves levying tax when buying a bagel if the legendary New York bagel is prepared in any way. This publication writes 6sqft.
Next time you decide to enjoy bagels, which are synonymous with authentic New York cuisine, think about the tax on that product. Since 2010, a very unusual law has been in effect in New York: if, when ordering a bagel in a cafe, you ask to cook it in any way or just cut it in half, get ready to pay tax. If the bagel remains intact, retaining its original round shape, no tax will be charged.
A bagel prepared in any way is taxed at a rate of 8,875%: if it is served with butter or spreads, in the form of a sandwich or even just cut in half.
According to the New York State Department of Taxation and Finance, "typically, food and groceries sold in grocery stores are exempt from sales tax."
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If you decide to enjoy the New York bagel right in the cafe, even if it is whole, you will pay in excess of the original cost of the bagel. If you order a bagel with you, asking him to preheat it, you will also pay tax.
At one time, state authorities decided to introduce an unusual tax to replenish the treasury. Bagel shopkeepers were the first to be surprised at the innovation. Sellers also reported that a price increase of around 8% led to a series of angry shoppers.
Some say the details of the law are not clear enough. For example, while sliced bagels are taxed, pre-sliced loaves of bread are not.
So if you want to avoid paying tax, just order your bagel with you, leaving it untouched.