Senate Bill S2385

                                 BILL NUMBER:  S2385

 TITLE OF BILL :
An act to amend the tax law, in relation to providing an income tax
credit for the purchase of motor vehicle passive tracking devices

 PURPOSE :
To allow an income tax credit for taxpayers who purchase motor vehicle
tracking devices.

 SUMMARY OF PROVISIONS :
Reletters and adds a new subsection (gg) to section 606 of the tax law
allowing a tax credit for one half the cost of purchase and
installation of a tracking device in a non commercial private
passenger automobile. Such credit would not exceed $300 and apply to
the taxable year beginning January 1, 2008.

 EXISTING LAW :
Section 2336 (e) and (f) of the insurance law allows for an
appropriate reduction in the comprehensive premium if a device is
installed. This is interpreted by the insurance department to allow
for discounts up to 15%.

 JUSTIFICATION :
While the number of vehicles stolen in NYS today (48,293 in 2002), and
NYC (27,034 in 2002) is far lower today than the historically high
              

level of 1990 (186,741 NYS/147,128 NYC), anyone whose car is stolen is
very much a victim whose life and livelihood is markedly changed.
Further, the value of vehicles stolen in 2007 is far greater than the
value of vehicles stolen in 1990, so the financial burden is much
greater on individuals and families. Allowing individuals a modest tax
credit to encourage the purchase of vehicle recovery devices will
unquestionably aid in the recovery of vehicles and the prevention of
theft, therefore reducing the cost of investigation, prosecution and
incarceration of these types of felonies for state and local
government.

 FISCAL IMPLICATIONS :
Approximately 25,000 Vehicle Recovery Devices were sold in NYS in 2000
for passenger vehicles. The State Department of Taxation and Finance
estimates the cost to NYS to be $3 million in SFY 06-07 and $11
million annually thereafter.  However, the reduced costs for
investigation, prosecution and incarceration that would result from
this bill's adoption would produce a net savings for NYS and its
localities.

 LEGISLATIVE HISTORY :
S.1661 of 2007-08 (Senate Investigations/Government Operation;
S.1213/A.2357 of 2005-06 (Senate Investigations/Government
Operations);
S.1336/A.2588 of 2003-04 (Senate Investigations/Government
Operations),
S.3085/A.6999 of 2001-02.

 EFFECTIVE DATE :
Immediately.