Having Your Bagel Toasted Could Be Hitting You In The Wallet
The next time you go to a deli or cafe and ask for your bagel to be toasted, pay attention to the final price you’re charged.
According to USA Today, New York imposes an 8 cent tax to all “altered” bagels, whether it is sliced, toasted or served with a “schmear” of cream cheese or butter.
Carla Yrjanson is the vice president of tax research and content for Thompson Reuters and explains: “Cut bagels cross the line and become a prepared meal or food sold for on-premises consumption, which is taxable. Uncut bagels are typically sold for home consumption and would meet the definition of a (tax) exempt food in New York.”
But New York isn’t the only state with strange tax laws. According to USA Today, here are a couple ways other states are bringing in some extra revenue:
Kansas: There is an amusement tax for a ride in an attached to the ground hot air balloon. Unattached balloon rides, however, qualify as transportation and are tax-exempt.
California: The state imposes a 33% tax on fruit bought from vending machines, but not from the grocery store.
Alabama: The state stacks on a 10 cent tax for all 54-or-less-card decks of playing cards sold.
Illinois: It charges a 5% tax on candy, on top of the state’s 1.0% food tax. The 5% tax exempts candy containing flour as a means of differentiating candy from food.
Colorado: The state taxes retailers of food, meals or beverages a tax on “nonessential” food-related items, including napkins and bibs, utensils and straws. Paper cups and disposable containers are considered essential and are not taxed.
Maryland: It charges homeowners and businesses a sewage tax, or “flush tax,” of $2.50 a month.
Connecticut : Adult diapers go untaxed. Children’s diapers, on the other hand, are taxed.
Source: USA Today