BILL NUMBER: AB 233	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Smyth
    (   Coauthors:   Assembly Members 
 Adams,   Bill Berryhill,   Duvall,  
Garrick,   Jeffries,   Nestande,   Silva,
  and Solorio  ) 
    (   Coauthors:   Senators  
Maldonado   and Strickland   ) 

                        FEBRUARY 5, 2009

   An act to  amend Section 17076 of, and to  add Section
17239 to  ,  the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 233, as amended, Smyth. Personal income tax: deductions: pet
adoption fees.
   The Personal Income Tax Law allows various deductions in computing
the income that is subject to the taxes imposed by that law.
   This bill would allow for taxable years beginning on or after
January 1, 2010, and before January 1, 2015, a deduction under that
law for the qualified costs paid or incurred during the taxable year
by a taxpayer for the adoption of pets from a qualified animal rescue
organization, as defined.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17076 of the   Revenue
and Taxation Code   is amended to read: 
   17076.  (a) Section 67 of the Internal Revenue Code, relating to
the 2-percent floor on miscellaneous itemized deductions, shall
apply, except as otherwise provided.
   (b) A deduction allowable under this part that exceeds three
thousand dollars ($3,000) and is described in Section 17049, relating
to computation of tax where taxpayer restores a substantial amount
held under claim of right, may not be treated as a miscellaneous
itemized deduction under Section 67 of the Internal Revenue Code, as
applicable for purposes of this part. 
   (c) The deduction allowed by Section 17239, relating to pet
adoption fees, may not be treated as a miscellaneous itemized
deduction under Section 67(a) of the Internal Revenue Code. 
   SECTION 1.   SEC. 2.   Section 17239 is
added to the Revenue and Taxation Code, to read:
   17239.  (a) For each taxable year beginning on or after January 1,
2010, and before January 1, 2015, there shall be allowed as a
deduction an amount equal to the qualified costs paid or incurred by
a taxpayer for the adoption of a pet from a qualified animal rescue
organization.
   (b) For the purposes of this section, the following definitions
shall apply: 
   (1) "Qualified animal rescue organization" means any city, county,
or city and county animal control agency or shelter or an animal
adoption organization that is exempt from taxation under Section 501
(c)(3) of the Internal Revenue Code.  

   (1) "Pet" means an animal adopted from a qualified animal rescue
organization that is not used by the taxpayer in a trade or business
or for the production of income.
   (2) "Qualified animal rescue organization" means a public animal
control agency or shelter, humane society shelter, or rescue group. A
rescue group as used in this section is a not-for-profit entity, as
defined in Section 501(c)(3) of the Internal Revenue Code, whose
primary purpose is the placement of dogs, cats, or other animals that
have been removed from a public animal control agency or shelter,
society for the prevention of cruelty to animals shelter, or humane
society, or that have been surrendered or relinquished to the entity
by the previous owner.  
   (2)
    (3)  "Qualified costs" means  adoption fees
  amounts paid or incurred to a qualified animal rescue
organization to adopt a pet, not to exceed one hundred dollars ($100)
 .
   (c) The deduction allowed under this section  for a taxable
year  shall not exceed  three hundred dollars ($300)
  one hundred dollars ($100)  .
   SEC. 2.   SEC. 3.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.