S T A T E   O F   N E W   Y O R K
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                                  6740

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              April 1, 2015
                               ___________

Introduced by M. of A. KOLB, BARCLAY, McDONOUGH, RAIA -- Multi-Sponsored
  by -- M. of A.  GIGLIO, HAWLEY, McKEVITT, OAKS, TENNEY, THIELE -- 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
under this article but exempt from federal income  tax,  to  the  extent

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03601-01-5
              

A. 6740                             2

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)]  NINE  of  subsection  (c) of section six
hundred twelve OF THIS PART; [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)]  TEN  of  subsection  (c) of section six
hundred twelve[.] OF THIS PART;
  (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.