Establishes tax deductions for the tax paid by the taxpayer in connection with the purchase of a new automobile and for the interest paid by the taxpayer in connection with an automobile loan.
STATE OF NEW YORK
________________________________________________________________________
7111
2009-2010 Regular Sessions
IN ASSEMBLY
March 20, 2009
___________
Introduced by M. of A. KOLB, BARCLAY, HAYES, McDONOUGH, SAYWARD, SCOZZA-
FAVA, TOBACCO, WALKER, RAIA -- Multi-Sponsored by -- M. of A. GIGLIO,
HAWLEY, McKEVITT, OAKS, THIELE, TOWNSEND, WEISENBERG -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing tax deductions
for the tax paid by the taxpayer in connection with the purchase of a
new automobile and for the interest paid by the taxpayer in connection
with an automobile loan
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (d) of section 615 of the tax law, as amended
2 by chapter 921 of the laws of 1963, paragraph 1 as amended by chapter
3 1006 of the laws of 1970, paragraph 2 as amended by chapter 406 of the
4 laws of 1990 and paragraph 4 as added by section 2 of part DD of chapter
5 63 of the laws of 2000, is amended to read as follows:
6 (d) Modifications increasing federal itemized deductions. The total
7 amount of deductions from federal adjusted gross income shall be
8 increased by:
9 (1) an amount, not exceeding one hundred and fifty dollars in the
10 aggregate, for net premiums paid or incurred by a taxpayer during the
11 taxable year with respect to any life insurance or endowment policy upon
12 his life; provided, however, for taxable years beginning on or after
13 January first, nineteen hundred seventy-one, such amount shall not
14 exceed one hundred dollars in the aggregate; and for taxable years
15 beginning on or after January first, nineteen hundred seventy-two, such
16 amount shall not exceed fifty dollars in the aggregate; and for taxable
17 years beginning on or after January first, nineteen hundred seventy-
18 three, no such increase in the amount of deductions from federal
19 adjusted gross income shall be allowed;
20 (2) interest on indebtedness incurred or continued to purchase or
21 carry obligations or securities the interest on which is subject to tax
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10151-05-9
A. 7111 2
1 under this article but exempt from federal income tax, to the extent
2 that such interest on indebtedness is not deductible for federal income
3 tax purposes and is not subtracted from federal adjusted gross income
4 pursuant to paragraph (9) of subsection (c) of section six hundred
5 twelve; [and]
6 (3) ordinary and necessary expenses paid or incurred during the taxa-
7 ble year for (i) the production or collection of income which is subject
8 to tax under this article but exempt from federal income tax, or (ii)
9 the management, conservation or maintenance of property held for the
10 production of such income, and the amortizable bond premium for the
11 taxable year on any bond the interest on which is subject to tax under
12 this article but exempt from federal income tax, to the extent that such
13 expenses and premiums are not deductible in determining federal adjusted
14 gross income and are not subtracted from federal adjusted gross income
15 pursuant to paragraph (10) of subsection (c) of section six hundred
16 twelve[.];
17 (4) allowable college tuition expenses, as defined in paragraph two of
18 subsection (t) of section six hundred six of this article, multiplied by
19 the applicable percentage. Such applicable percentage shall be twenty-
20 five percent for taxable years beginning in two thousand one, fifty
21 percent for taxable years beginning in two thousand two, seventy-five
22 percent for taxable years beginning in two thousand three and one
23 hundred percent for taxable years beginning after two thousand three.
24 Provided, however, no deduction shall be allowed under this paragraph to
25 a taxpayer who claims the credit provided under subsection (t) of
26 section six hundred six of this article[.];
27 (5) interest on indebtedness incurred to purchase an automobile from
28 an automobile dealer located within the state during the term of repay-
29 ment of the loan, provided: (A) the automobile is purchased for the
30 taxpayer's personal use; (B) the automobile is registered in the name of
31 the taxpayer; and (C) such deduction shall apply only to the amount of
32 interest attributable to the first forty-nine thousand five hundred
33 dollars of the automobile loan amount; and
34 (6) an amount not to exceed the sum of the state and local sales and
35 compensating use taxes paid by the taxpayer in connection with the
36 purchase of the automobile from an automobile dealer located within the
37 state provided: (A) the automobile is purchased for the taxpayer's
38 personal use; (B) the automobile is registered in the name of the
39 taxpayer; (C) such deduction is allowable once with respect to any auto-
40 mobile; and (D) such deduction shall apply only to the amount of tax
41 attributable to the first forty-nine thousand five hundred dollars of
42 the automobile purchase price.
43 § 2. This act shall take effect on the first of January next succeed-
44 ing the date on which it shall have become a law and shall apply to
45 taxable years beginning on or after such date.
