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How about a tax break for pet adoption fees?
By Gina Spadafori
February 17, 2009
The lobbyist who sits next to me (and who happens to be the mom of one of these adorable veterinarians-to-be) dropped the text of California Assembly bill 233 on my chair this morning.
In brief, it would let folks take a state income tax deduction of up to $300 for the fee associated with taking in a pet from a 501(c)3 rescue or shelter or municipal animal control facility.
Under the current circumstances — the state still has no budget, and will start laying off workers today — I wouldn’t think this bill has much chance. And I’m not sure that it should. I’d rather see pay-to-spay (and neuter) programs that provide incentives and help for communities that need them most — and those are often not where people make enough money to benefit from a tax deduction.
In any case … you can read the text here by entering AB 233.
What do you think of it?
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Agree.
Too many programs hawk “deductibility”, knowing full well the folks that would most benefit are better off not itemizing.
Comment by eli — February 17, 2009 @ 11:08 am
I also agree with Gina.
I like the fact that AB 233 would establish an incentive program rather than a punitive or coercive program that most pet-related laws seem to take. But I think we need to look beyond that high level, and ask if this (or any other) proposed incentive program is really effectively targeted and cost effective. In the case of AB 233, we should examine whether the program would cost effectively encourage more adoptions.
As eli said, income tax deductions only benefit those who itemize their deductions. Most of the people who itemize their deductions have enough income that they will adopt a pet (or not) regardless of an income tax deduction for the adoption fees. The lower-income people whose decisions are more likely to be influenced by an incentive program for the most part do not itemize their deductions anyway. And even if they do, the deduction isn’t worth much owing to their low tax bracket. So this proposed program targets — and benefits — the wrong people. I don’t see it doing a whole lot to encourage more adoptions.
If this had been structured as an income tax credit rather than an income tax deduction, at least it would equally benefit anybody who files income tax forms. But even then, much of it would be wasted, a giveaway for people who will adopt or not regardless of the credit.
I’m with Gina. Experience demonstrates that low cost, free, or “pay to spay” accessible s/n programs are cost effective and well-targeted. They give much better “bang for the buck” for our taxpayer dollars.
Comment by LauraS — February 17, 2009 @ 11:36 am
Since pets use much of the same medications as humans and vets perform CAT scans and chemo treatments, etc, etc, why can’t deductions be made for income tax purposes. Vets must file taxes. Why can’t people who give their pets care, be able to recoup some of the cost on tax filings. I’ve said for years, we should be able to recoup some of the medical expenses.
Comment by VJ — February 17, 2009 @ 11:40 am
VJ … that’s going to be a hard sell poltically.
If you remember us mentioning it here, part of the California budget battle is taxing services — everything from veterinary costs to auto repair to a round of golf. That speaks to a large group of people who see pets as the “same” as any other expense — the repair of a “thing” not a “family member.”
Deducting medical expenses for pets would be seen as subsidizing a “hobby” by many people.
I don’t know where, exactly, you draw the line on the legal status of pets, and know you get into a lot of potentially messy issues when you try. I would like to think animals get some special “midway” status legally — recognized as not the same as an object, but still “owned.” As Christie has pointed out on this blog and elswhere, there are benefits to pets and people from the reform of the “ownership” model — as opposed to an acceptance of a “guardianship” model. I do not need someone else’s oversight to make good decisions for my pets, thanks.
Comment by Gina Spadafori — February 17, 2009 @ 11:49 am
In theory, shelters could make adoptions tax-deductable now.
What would prevent a shelter form providing “free adoptions” as long as people give a “donation” to the shelter.
The donation to the shelter (assuming it is a 501c3) would be tax-deductable. Which would all serve the same purpose, but provide a tax-deductible option.
Comment by Brent — February 17, 2009 @ 12:21 pm
I think incentivizing shelter adoption is a great idea. Not right now, with the economy in such chaos and shelter adoptions apparently on the INCREASE, but as part of an overall strategy to promote social behavior that saves taxpayer money and helps meet public goals? Sure. I’m all for it.
Comment by Christie Keith — February 17, 2009 @ 12:33 pm
I like it. I also like the idea of shelters providing free adoptions for a tax deductible donation (assuming that’s legal).
Personally, I’m all for allowing significant vet bills - like for multi-modality oncology treatment - to be deductible. Not for basic treatment, but for the unexpected high end stuff. I also agree that politically that’s just not going to happen.
Comment by Phyllis DeGioia — February 17, 2009 @ 3:52 pm