Provides a tax deduction from personal income taxes for un-reimbursed expenses paid for veterinary care of companion animals

BILL NUMBER:S4956

Title of bill

An act to amend the tax law, in relation to providing a deduction from personal income taxes for un-reimbursed expenses paid for veterinary care of companion animals

Purpose

To grant taxpayers a personal income tax credit for uncompensated veterinary care and medication expenses for a companion animal that exceed 7.5% of the taxpayer's AGI.

Summary of provisions

Establishes a personal income tax credit for uncompensated expenses for veterinary care of and medication for a companion animal that exceed 7.5% of the taxpayer's AGI;

-Requires that the Commissioner of Taxation and Finance promulgate rules and regulations to establish criteria for the veterinary care deduction; and,

-Act taking effect the next January 1st after it becomes law, and shall apply to all taxable years after that date, provided that the Commission is authorized to promulgate rules and regulations immediately.

Justification

According to the 200-10 National Pet Owners Survey, 62% of U.S. households (or 71.4 million homes) own a pet. In 2010, Americans spent an estimated $47.7 billion on their pets, of which about one fourth ($12.79 billion) was for veterinary expenses.

The bond between pet owners and their companion animals has been demonstrated to have positive effects upon the well being of the owners. Sadly, in these difficult economic times more families have come into financial hardship and been forced to give up their pets when veterinary expenses have become too much to bear.

When companion animals lose their homes, they become a stress to our overburdened shelter system. Animals in public shelters average a seven day stay during which time the public pays for around the clock care, food, medicine, cleaning - and often euthanizing and body disposal expenses. The care, housing, and killing of these animals come at a significant cost to the public. It is preferable for pets to remain in their homes with the people who love them. New York state tax policy already exempts veterinary expenses from sales tax. A reasonably limited tax credit expands on this principle.

Legislative history

A.10073 of 2009-10

Fiscal implications

Unknown.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all taxable years commencing on or after such date; provided that, effective immediately, the commissioner of taxation and finance is authorized to and shall promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date on or before such date.