Bushnell's Basin bagel shop owner hit with a fine | News
The owner of a local Bruegger's Bagel shop is being hit with a fine. The state says he did not charge sales tax when customers had their bagels sliced on site.
Ken Greene, who owns shops in Albany, as well as Bushnell's Basin, is being charged for three years worth of uncollected sales tax. He says his businesses have been audited four times in the past 12 years, and this never came up. But it has now. His businesses were audited by the Department of Taxation and Finance recently and come to find out, he owes a lot of money for not charging customers a prepared food tax.
If you order your bagel slided, with no topping, it carries a sales tax. Any toppings like cream cheese or butter, sales tax.
"Or if you eat that unsliced bagel in the store all of those things make it sales taxable, even if you get it sliced and plan to go. Now it's sales taxable," said Michael Rosen, Food Industry Alliance.
It isn't that the sales tax is new, but instead that under the new state budget, there is an increase of audit and compliance activity to generate an additional revenue. Nonetheless, as a consumer, the next time you order a bagel, you may want to think about how you want it. It costs 8 cents more to have it sliced on site.