S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7111

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             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:

  Section 1. Subdivision (d) of section 615 of the tax law,  as  amended
by  chapter  921  of the laws of 1963, paragraph 1 as amended by chapter
1006 of the laws of 1970, paragraph 2 as amended by chapter 406  of  the
laws of 1990 and paragraph 4 as added by section 2 of part DD of chapter
63 of the laws of 2000, is amended to read as follows:
  (d)  Modifications  increasing  federal itemized deductions. The total
amount of  deductions  from  federal  adjusted  gross  income  shall  be
increased by:
  (1)  an  amount,  not  exceeding  one hundred and fifty dollars in the
aggregate, for net premiums paid or incurred by a  taxpayer  during  the
taxable year with respect to any life insurance or endowment policy upon
his  life;  provided,  however,  for taxable years beginning on or after
January first, nineteen  hundred  seventy-one,  such  amount  shall  not
exceed  one  hundred  dollars  in  the  aggregate; and for taxable years
beginning on or after January first, nineteen hundred seventy-two,  such
amount  shall not exceed fifty dollars in the aggregate; and for taxable
years beginning on or after January  first,  nineteen  hundred  seventy-
three,  no  such  increase  in  the  amount  of  deductions from federal
adjusted gross income shall be allowed;
  (2) interest on indebtedness incurred  or  continued  to  purchase  or
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

under this article but exempt from federal income  tax,  to  the  extent
that  such interest on indebtedness is not deductible for federal income
tax purposes and is not subtracted from federal  adjusted  gross  income
pursuant  to  paragraph  (9)  of  subsection  (c) of section six hundred
twelve; [and]
  (3) ordinary and necessary expenses paid or incurred during the  taxa-
ble year for (i) the production or collection of income which is subject
to  tax  under  this article but exempt from federal income tax, or (ii)
the management, conservation or maintenance of  property  held  for  the
production  of  such  income,  and  the amortizable bond premium for the
taxable year on any bond the interest on which is subject to  tax  under
this article but exempt from federal income tax, to the extent that such
expenses and premiums are not deductible in determining federal adjusted
gross  income  and are not subtracted from federal adjusted gross income
pursuant to paragraph (10) of subsection  (c)  of  section  six  hundred
twelve[.];
  (4) allowable college tuition expenses, as defined in paragraph two of
subsection (t) of section six hundred six of this article, multiplied by
the  applicable  percentage. Such applicable percentage shall be twenty-
five percent for taxable years beginning  in  two  thousand  one,  fifty
percent  for  taxable  years beginning in two thousand two, seventy-five
percent for taxable years  beginning  in  two  thousand  three  and  one
hundred  percent  for  taxable years beginning after two thousand three.
Provided, however, no deduction shall be allowed under this paragraph to
a taxpayer who claims  the  credit  provided  under  subsection  (t)  of
section six hundred six of this article[.];
  (5)  INTEREST  ON INDEBTEDNESS INCURRED TO PURCHASE AN AUTOMOBILE FROM
AN AUTOMOBILE DEALER LOCATED WITHIN THE STATE DURING THE TERM OF  REPAY-
MENT  OF  THE  LOAN,  PROVIDED:  (A) THE AUTOMOBILE IS PURCHASED FOR THE
TAXPAYER'S PERSONAL USE; (B) THE AUTOMOBILE IS REGISTERED IN THE NAME OF
THE TAXPAYER; AND (C) SUCH DEDUCTION SHALL APPLY ONLY TO THE  AMOUNT  OF
INTEREST  ATTRIBUTABLE  TO  THE  FIRST  FORTY-NINE THOUSAND FIVE HUNDRED
DOLLARS OF THE AUTOMOBILE LOAN AMOUNT; AND
  (6) AN AMOUNT NOT TO EXCEED THE SUM OF THE STATE AND LOCAL  SALES  AND
COMPENSATING  USE  TAXES  PAID  BY  THE  TAXPAYER IN CONNECTION WITH THE
PURCHASE OF THE AUTOMOBILE FROM AN AUTOMOBILE DEALER LOCATED WITHIN  THE
STATE  PROVIDED:  (A)  THE  AUTOMOBILE  IS  PURCHASED FOR THE TAXPAYER'S
PERSONAL USE; (B) THE AUTOMOBILE  IS  REGISTERED  IN  THE  NAME  OF  THE
TAXPAYER; (C) SUCH DEDUCTION IS ALLOWABLE ONCE WITH RESPECT TO ANY AUTO-
MOBILE;  AND  (D)  SUCH  DEDUCTION SHALL APPLY ONLY TO THE AMOUNT OF TAX
ATTRIBUTABLE TO THE FIRST FORTY-NINE THOUSAND FIVE  HUNDRED  DOLLARS  OF
THE AUTOMOBILE PURCHASE PRICE.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
taxable years beginning on or after such date.