Will Demand for Toast and Muffins Increase?

The cost of bagels is going up in New York:

New York State tax officials are enforcing a sales tax for sliced or prepared bagels (with cream cheese or other toppings), along with whole bagels eaten in the store, according to the state Department of Taxation and Finance.

Whole bagels sold for takeout are not subject to sales tax, but "any handling or preparation at the shop turns it into a taxable event," says Brad Maione, a spokesperson for the DTF.

Although Maione says the sales tax is not a new provision and that the stepped up enforcement is due to better technology, bagel-store owners say the tax was news to them.

HT: Mike Piana