BILL NUMBER: AB 233	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2009
	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.   costs. 
   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   costs  , may not be
treated as a miscellaneous itemized deduction under Section 67(a) of
the Internal Revenue Code.
  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
 during the taxable year  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) "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.
   (3) "Qualified costs" means 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 one hundred dollars ($100).
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.