What's happening
This bill allows New York taxpayers to deduct certain sales taxes and loan interest paid on new car purchases from state income tax.
Why it matters
Provides targeted financial relief. for New Yorkers who buy new cars by allowing deductions for both sales taxes paid and interest on auto loans, potentially lowering the overall cost of vehicle ownership.
Caps the benefit. at the first $49,500 of the purchase price or loan amount, which means luxury vehicles over that price will not see additional deductions, focusing the tax break on more typical car buyers.
Requires that the car be for personal use and registered to the taxpayer. , preventing businesses or those purchasing cars for others from claiming the deductions, thereby ensuring the benefit is narrowly tailored to individual consumers.
May influence car-buying decisions. , possibly encouraging purchases from in-state dealers and providing an incentive for residents to buy new (not used) cars within New York, which could have positive effects for local auto retailers and state sales tax revenues.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Car Purchase Tax Deductions
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
4 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5387
2017-2018 Regular Sessions
IN ASSEMBLY
February 8, 2017
Introduced by M. of A. KOLB, BARCLAY, McDONOUGH, RAIA -- Multi-Sponsored by -- M. of A. GIGLIO, HAWLEY, McKEVITT, OAKS, 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 Assembly, 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 seventythree, 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.
LBD03288-01-7
A. 5387 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 taxable 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 twentyfive 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 repayment 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 automobile; 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 succeeding the date on which it shall have become a law and shall apply to taxable years beginning on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.