Laptop Battery Even as he announces plans this week to expand some tax breaks for small businesses, Gov. George E. Pataki will propose taking away at least one: a provision that allows business owners and the self-employed to claim sizable deductions for buying giant sport utility vehicles.
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Thinkpad In his annual budget address on Wednesday, Governor Pataki will call for closing what he calls a loophole that has let doctors, real estate agents and others buy vehicles like Hummers and Ford Excursions, then take a tax break intended mainly for farmers.
Under Mr. Pataki's proposal, nonagricultural businesses in New York that claim the deduction for such a passenger vehicle on their federal tax returns would be required to restore the deduction to their state income statements and pay the state tax on it, a spokeswoman for Mr. Pataki said. The change could apply in the fiscal year that begins on April 1, 2004, if the Legislature approves it, the spokeswoman, Lisa Stoll, said.
Microsoft "Eliminating this loophole is an issue of fairness and good policy," Mr. Pataki said in a statement.
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Laptop Computers The tax break applies to vehicles weighing more than 6,000 pounds when fully loaded, like Hummers, a line of S.U.V.'s based on the Humvee military transport. The law was intended to benefit small businesses that used trucks and vans for farming, construction and hauling. The Bush economic plan seeks to increase tax deductions for those who buy the vehicles.
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Laptop Computer Under Mr. Pataki's proposal, nonagricultural businesses in New York that claim the deduction for such a passenger vehicle on their federal tax returns would be required to restore the deduction to their state income statements and pay the state tax on it, a spokeswoman for Mr. Pataki said. The change could apply in the fiscal year that begins on April 1, 2004, if the Legislature approves it, the spokeswoman, Lisa Stoll, said.
A small business owner, for example, who buys a Hummer H1 one of the largest and most expensive S.U.V.'s, with a base sticker price of $102, 581 could claim the purchase as a deduction on his federal income tax return. But under the new law, he would have to pay the state tax on that amount, Mr. Pataki's aides said. That would mean an additional $1, 000 in state taxes, they said.
Desktop Computer A small business owner, for example, who buys a Hummer H1 one of the largest and most expensive S.U.V.'s, with a base sticker price of $102,581 could claim the purchase as a deduction on his federal income tax return. But under the new law, he would have to pay the state tax on that amount, Mr. Pataki's aides said. That would mean an additional $1,000 in state taxes, they said.
Notebooks Mr. Pataki's aides said that the proposal would raise up to $2 million a year in new revenue, a small amount for a state facing a $12 billion cumulative budget gap for this year and next.
Lenovo But environmentalists cited other benefits, such as ending an incentive for buying vehicles that burn more fuel and pollute more.
Hard Drive "It's encouraging people who would not normally buy these gas guzzlers to buy them because it seems cheaper," said David Friedman, a senior analyst with the Union of Concerned Scientists, a nonprofit environmental group in Cambridge, Mass. "It's increased our oil dependence and the amount of money that small businesses are paying for gas."
Travelstar By Winnie Hu
New York Times - 1/28/2003
Topic: Transportation
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