Delicious bagels may be found all throughout New York City, but locals have strong feelings about which spots serve the best. Every bagel sold in New York costs an extra eight cents according to the state’s bagel tax, which is a major point of contention among locals.
Now that Philadelphia Cream Cheese is making a name for itself, New Yorkers have a chance to avoid paying this levy.
The parent company, Kraft Heinz, recently announced that they would be working with the popular H&H Bagels on a special Tax Day offer. The Tax-Free Bagel looks like an ordinary, unsliced bagel on the outside, but its secret ingredient is cream cheese.
The company claims it can avoid the eight cent tax by selling bagels to customers in their entirety, giving them a resourceful way to enjoy bagels without spending more.
Curiously, Not All New York Bagels Are Taxed
Bagels served on the premises or those that are prepared to be eaten immediately are the only ones subject to the tax, reports the New York Times. However, whole bagels are not subject to sales tax because they are considered a food item for personal use.
Several businesses, including Bruegger’s Bagels, were caught off guard by this distinction and incurred penalties after their New York locations were audited in 2010 for failing to collect the tax.
Philadelphia Cream Cheese and H&H Bagels claim that their unsliced Tax-Free Bagels, which conceal cream cheese inside, are exempt from the bagel tax.
While the companies may have avoided the tax law in theory, in practice the bagels may still fall under New York state’s definition of taxable food as “prepared by the seller and ready to consume.”
Despite the possible legal ambiguity, the campaign is predicted to be popular with clients because it allows them to save eight cents while also engaging in a momentary act of rebellion.
The sale dates are April 14–April 18, which includes Tax Day. Customers in New York City can purchase Tax-Free Bagels at any H&H Bagel location.
H&H Bagels also offers countrywide delivery on their website for people who reside outside the city or for other reasons are unable to make it to a store.
This ingenious partnership between Philadelphia Cream Cheese and H&H Bagels raises awareness of the divisive bagel tax while providing New Yorkers with a temporary solution to the problem of finding affordable bagel options for breakfast.