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