Where a Taco Is a Sandwich

Last week, an Indiana judge entered a timeless debate.

It was all about a sandwich (and how Indiana and New York disagree).

A Sandwich Definition

Far beyond a meal, the meaning of a sandwich relates to zoning regulations and municipal revenue.

Zoning Regulations

In the Indiana decision, the judge proclaimed that a taco was a “Mexican-style sandwich.” More precisely, his decision related to whether a restauranteur could open his eatery in a strip mall that only permitted “made-to-order or subway style sandwiches.” Because the taco was a “made-to-order sandwich,” he had the go-ahead. So too did any establishment that prepared “made-to-order Greek gyros, Indian naan wraps, or Vietnamese banh mi.”

Sandwich Taxes

According to New York State, a sandwich can be, “as simple as a buttered bagel or roll, or as elaborate as a six-foot, toasted submarine sandwich…” but not a taco. When you separately buy some bologna, cheese, and bread, these items are not taxable. But if they are combined as the sandwich that you purchase, then you pay a tax. Similarly, in a New York State deli, if you order an uncut bagel and a side of cream cheese there is no tax. But if the cream cheese is on the bagel, it is a sandwich and taxable.

Our Bottom Line: The Cube Rule

Perhaps we have a solution.

Clarifying sandwich classification, the Cube Rule tells us that there are six categories for foods with “starch.” Where a food belongs depends on where the “starch” is placed. If it is just under the food, then it’s “toast.” (So pizza is toast.) On the top and the bottom? A sandwich. At a right angle? A taco. (Starches not included in the list like spaghetti are “salads.”)

Twitter user @Phosphatide illustrated the Cube Rule:

Further complicating the Indiana court decision, a hot dog is a taco.

My sources and more: This NY Times article returned us to the what-is-a-sandwich debate while this article gave us more answers from the court. For a past post, I learned about the Cube Rule from my Hustle newsletter. But perhaps most crucially, you can see from this (fascinating) NYC tax website that a taco is NOT a sandwich. So, I guess, New York and Indiana disagree.

Please note that today we quoted parts of a past econlife post.