Bill Text: NY A04096 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes 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.

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A04096 Detail]

Download: New_York-2019-A04096-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4096
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    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:
     1    Section 1. Subdivision (d) of section 615 of the tax law,  as  amended
     2  by  chapter  921  of the laws of 1963, paragraph 1 as amended by chapter
     3  1006 of the laws of 1970, paragraph 2 as amended by chapter 406  of  the
     4  laws of 1990, paragraph 4 as added by section 2 of part DD of chapter 63
     5  of the laws of 2000 and paragraph 5 as added by section 1 of part OOO of
     6  chapter 59 of the laws of 2017, is amended to read as follows:
     7    (d)  Modifications  increasing  federal itemized deductions. The total
     8  amount of  deductions  from  federal  adjusted  gross  income  shall  be
     9  increased by:
    10    (1)  an  amount,  not  exceeding  one hundred and fifty dollars in the
    11  aggregate, for net premiums paid or incurred by a  taxpayer  during  the
    12  taxable year with respect to any life insurance or endowment policy upon
    13  his  life;  provided,  however,  for taxable years beginning on or after
    14  January first, nineteen  hundred  seventy-one,  such  amount  shall  not
    15  exceed  one  hundred  dollars  in  the  aggregate; and for taxable years
    16  beginning on or after January first, nineteen hundred seventy-two,  such
    17  amount  shall not exceed fifty dollars in the aggregate; and for taxable
    18  years beginning on or after January  first,  nineteen  hundred  seventy-
    19  three,  no  such  increase  in  the  amount  of  deductions from federal
    20  adjusted gross income shall be allowed;
    21    (2) interest on indebtedness incurred  or  continued  to  purchase  or
    22  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
     1  under this article but exempt from federal income  tax,  to  the  extent
     2  that  such interest on indebtedness is not deductible for federal income
     3  tax purposes and is not subtracted from federal  adjusted  gross  income
     4  pursuant  to  paragraph  [(9)]  nine  of  subsection  (c) of section six
     5  hundred twelve of this part; [and]
     6    (3) ordinary and necessary expenses paid or incurred during the  taxa-
     7  ble year for (i) the production or collection of income which is subject
     8  to  tax  under  this article but exempt from federal income tax, or (ii)
     9  the management, conservation or maintenance of  property  held  for  the
    10  production  of  such  income,  and  the amortizable bond premium for the
    11  taxable year on any bond the interest on which is subject to  tax  under
    12  this article but exempt from federal income tax, to the extent that such
    13  expenses and premiums are not deductible in determining federal adjusted
    14  gross  income  and are not subtracted from federal adjusted gross income
    15  pursuant to paragraph [(10)]  ten  of  subsection  (c)  of  section  six
    16  hundred twelve[.] of this part;
    17    (4) allowable college tuition expenses, as defined in paragraph two of
    18  subsection (t) of section six hundred six of this article, multiplied by
    19  the  applicable  percentage. Such applicable percentage shall be twenty-
    20  five percent for taxable years beginning  in  two  thousand  one,  fifty
    21  percent  for  taxable  years beginning in two thousand two, seventy-five
    22  percent for taxable years  beginning  in  two  thousand  three  and  one
    23  hundred  percent  for  taxable years beginning after two thousand three.
    24  Provided, however, no deduction shall be allowed under this paragraph to
    25  a taxpayer who claims  the  credit  provided  under  subsection  (t)  of
    26  section six hundred six of this article[.];
    27    (5)  the full amount of union dues paid during the taxable year if the
    28  taxpayer was not allowed federal miscellaneous  itemized  deductions  by
    29  operation  of  section 67 of the internal revenue code. If any amount of
    30  union dues representing federal miscellaneous  itemized  deductions  was
    31  allowed,  then  the  amount allowed as a New York itemized deduction for
    32  union dues paid shall be a percentage of the union  dues  disallowed  by
    33  the  operation  of  section  67 of the internal revenue code computed as
    34  follows. The amount allowed as a New York itemized  deduction  shall  be
    35  computed by multiplying the total union dues paid by the taxpayer during
    36  the  taxable  year by a percentage determined by subtracting from one, a
    37  fraction where the numerator is  the  amount  of  federal  miscellaneous
    38  deductions  allowed and the denominator is the aggregate federal miscel-
    39  laneous itemized deductions before application of the two-percent  floor
    40  under  section 67 of the internal revenue code. For the purposes of this
    41  paragraph, union dues are those amounts that  are  deductible  as  union
    42  dues  and  agency  shop  fees  under section 162 of the internal revenue
    43  code[.];
    44    (6) interest on indebtedness incurred to purchase an  automobile  from
    45  an  automobile dealer located within the state during the term of repay-
    46  ment of the loan, provided: (A) the  automobile  is  purchased  for  the
    47  taxpayer's personal use; (B) the automobile is registered in the name of
    48  the  taxpayer;  and (C) such deduction shall apply only to the amount of
    49  interest attributable to the  first  forty-nine  thousand  five  hundred
    50  dollars of the automobile loan amount; and
    51    (7)  an  amount not to exceed the sum of the state and local sales and
    52  compensating use taxes paid by  the  taxpayer  in  connection  with  the
    53  purchase  of the automobile from an automobile dealer located within the
    54  state provided: (A) the  automobile  is  purchased  for  the  taxpayer's
    55  personal  use;  (B)  the  automobile  is  registered  in the name of the
    56  taxpayer; (C) such deduction is allowable once with respect to any auto-

        A. 4096                             3
     1  mobile; and (D) such deduction shall apply only to  the  amount  of  tax
     2  attributable  to  the  first forty-nine thousand five hundred dollars of
     3  the automobile purchase price.
     4    §  2. This act shall take effect on the first of January next succeed-
     5  ing the date on which it shall have become a  law  and  shall  apply  to
     6  taxable years beginning on or after such date.
feedback