Bagel Tax In New York Shops

By: Bill Waters
08/26/2010 08:50 AM ET

Bagel tax in New York shops. New York is now enforcing a tax on sliced or prepared bagels, but some shop owners ignored it. The tax on a bagel will cost New Yorkers an extra 8 cents.

Tax on bagels will not be enforced by New York. The city of Albany asked tax officials to crack down on bagel shops. Currently, the city is financially strapped.

New York officials are auditing stores, but when the state audited one in Albany, they discovered that the shop owners were not in compliance. In fact, the shop hasn’t paid the tax on bagels for the past three years. The shop received a substantial fine and was forced to tax customers for their sliced bagels. “I was aware of the bagel tax but believed it applied only when bagels were sliced for sandwich purposes,” shop owner Kenneth Greene said in a statement.

Once the new tax was implemented on the bagels, Greene’s customers became enraged. So, he posted signs explaining it was the city of Albany taking their money and not him. The bagel tax applies to sliced or prepared bagel and to whole bagels, which are eaten inside the store. It runs the bagel consumers around an extra $0.08 in Albany.

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