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

                                   886

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of  A. KELLNER, WEISENBERG, SCARBOROUGH, KAVANAGH --
  Multi-Sponsored by -- M.  of A. GALEF, GOTTFRIED, McDONOUGH,  SALADINO
  -- read once and referred to the Committee on Ways and Means

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs 2, 3 and 4 of subsection (d) of section  615  of
the  tax law, paragraph 2 as amended by chapter 406 of the laws of 1990,
paragraph 3 as amended by chapter 921 of the laws of 1963 and  paragraph
4  as  added  by section 2 of part DD of chapter 63 of the laws of 2000,
are amended and a new paragraph 5 is added to read as follows:
  (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
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)  of  subsection  (c) of section six hundred
twelve; [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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00394-01-1
              

A. 886                              2

pursuant to paragraph (10) of subsection  (c)  of  section  six  hundred
twelve[.];
  (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[.]; AND
  (5)  EXPENSES,  NOT  COMPENSATED  FOR  BY INSURANCE OR OTHERWISE, PAID
DURING THE TAXABLE YEAR BY THE TAXPAYER OR HIS OR HER SPOUSE FOR VETERI-
NARY CARE OF AND MEDICATION  FOR  A  COMPANION  ANIMAL,  AS  DEFINED  IN
SECTION  THREE  HUNDRED FIFTY OF THE AGRICULTURE AND MARKETS LAW, TO THE
EXTENT THAT SUCH EXPENSES EXCEED  SEVEN  AND  ONE-HALF  PERCENT  OF  THE
TAXPAYER'S ADJUSTED GROSS INCOME.
  S  2.  The commissioner of taxation and finance shall promulgate rules
and regulations to establish criteria for the veterinary care  deduction
provided  for in section one of this act, including determining expenses
eligible for the deduction, which shall include, but not be limited  to,
amounts   paid  for  the  diagnosis,  cure,  mitigation,  treatment,  or
prevention of disease, to treat injury sustained as  the  result  of  an
accident,  and  to  promote  the  proper  structure  and function of the
animal's body, and for necessary medications, and shall take such  other
measures  as  he  or  she deems necessary to implement the provisions of
this section.
  S 3. 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 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.