S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4096
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced by M. of A. KOLB, BARCLAY, McDONOUGH, RAIA -- Multi-Sponsored
   by -- M. of A. GIGLIO, HAWLEY, 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, paragraph 4 as added by section 2 of part DD of chapter 63
 of the laws of 2000 and paragraph 5 as added by section 1 of part OOO of
 chapter 59 of the laws of 2017, 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.
              

                                                            LBD04080-01-9

 A. 4096                             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)]  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)  the full amount of union dues paid during the taxable year if the
 taxpayer was not allowed federal miscellaneous  itemized  deductions  by
 operation  of  section 67 of the internal revenue code. If any amount of
 union dues representing federal miscellaneous  itemized  deductions  was
 allowed,  then  the  amount allowed as a New York itemized deduction for
 union dues paid shall be a percentage of the union  dues  disallowed  by
 the  operation  of  section  67 of the internal revenue code computed as
 follows. The amount allowed as a New York itemized  deduction  shall  be
 computed by multiplying the total union dues paid by the taxpayer during
 the  taxable  year by a percentage determined by subtracting from one, a
 fraction where the numerator is  the  amount  of  federal  miscellaneous
 deductions  allowed and the denominator is the aggregate federal miscel-
 laneous itemized deductions before application of the two-percent  floor
 under  section 67 of the internal revenue code. For the purposes of this
 paragraph, union dues are those amounts that  are  deductible  as  union
 dues  and  agency  shop  fees  under section 162 of the internal revenue
 code[.];
   (6) 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
   (7)  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-

 A. 4096                             3
 
 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.
   §  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.