2023 New York Laws › TAX - Tax › Article 12 - Tax on Transfers of Stock and Other Corporate Certificates › 276 - Power of Tax Commission.

§  276.    Power  of  tax  commission.    Every person, firm, company,
association, corporation or business conducted by a trustee or trustees,
engaged in whole or in part in  the  making  or  negotiating  of  sales,
agreements  to  sell,  deliveries or transfers of shares or certificates
taxable under this article, or conducting  or  transacting  a  brokerage
business,  hereinafter  in  this  section called "broker", shall keep or
cause to be kept at some accessible place within the state of New  York,
a  just  and  true book of account, in such form as may be prescribed by
the tax commission, wherein shall be plainly  and  legibly  recorded  in
separate  columns (1) unless provided otherwise by rules and regulations
of the tax commission, providing for its recording in some other  manner
in  records  kept by such broker, the date of receipt of every order for
every sale, agreement to sell, delivery or transfer of  such  shares  or
certificates together with the name, class and number of shares to which
such  order  relates  and  the name and address (or other identification
which refers to records kept by such broker  containing  such  name  and
address)  of  the person placing the order; (2) the date of making every
sale, agreement  to  sell,  delivery  or  transfer  of  such  shares  or
certificates,  the  name  and  the number of shares thereof, the selling
price, the date of  the  order  or  orders  to  which  such  transaction
relates;  (3) the name and address (or other identification which refers
to records kept by such broker, containing such name and address) of the
seller or transferrer,  and  his  resident  or  nonresident  status,  as
defined  in  the  provisions  of  section  two hundred seventy-a of this
chapter; (4) the name of the purchaser or transferee; (5) the face value
of the adhesive stamps affixed; and (6) the identifying  number  of  the
bill  or  memorandum of sale used as provided for by section two hundred
and seventy of this chapter.  This book shall also have recorded therein
each separate purchase of stock transfer stamps, showing the  date,  the
amount and from whom purchased.
Every  association,  company or corporation or business conducted by a
trustee or trustees shall keep or cause to be kept  at  some  accessible
place  within  the state of New York a stock certificate book and a just
and true book of account, transfer ledger or register, in such  form  as
may  be  prescribed  by the tax commission, wherein shall be plainly and
legibly recorded in separate columns, the date of making every  transfer
of  stock,  or other certificates included within this article, the name
and number of shares thereof, the  serial  number  of  each  surrendered
certificate,  the name of the parties surrendering such certificate, the
serial number of the certificate issued in exchange therefor, the number
of shares covered by said certificate, the name of  the  party  to  whom
said certificate was issued and the face value of the stamps attached in
payment  of the tax on the transfer of the certificate.  Evidence of the
payment of the tax provided for by sections two hundred and seventy  and
two  hundred  and  seventy-a of this chapter shall be provided in one of
the following manners and not otherwise, to wit:
(a)  By attaching to the certificate  surrendered  for  transfer,  the
stamps  required  for  and any declaration permitted by paragraph (c) of
subdivision one of section two hundred seventy-a of  this  chapter  with
respect to such transfer, or
(b)    If  the stamps and any such declaration are not attached to the
certificate, but  are  attached  to  the  bill  or  memorandum  of  sale
effecting  or  evidencing the transfer of such certificate, by attaching
to said certificate the said bill or memorandum of sale with stamps  and
declaration, if any, attached, or
(c)   If the stamps and declaration, if any, covering the transfer are
attached to a bill or memorandum effecting a transfer  of  one  or  more
certificates or to one or more certificates included in said transfer, a

notation must be made upon such certificates, bill or memorandum, as the
case  may  be,  clearly  specifying  and  identifying the certificate or
certificates to the sale or  transfer  of  which  the  said  stamps  and
declaration apply, or
(d)   If the bill or memorandum bearing such stamps and declaration is
not attached to the surrendered certificate or certificates to which  it
applies,  a  notation  must be made upon such bill or memorandum stating
the serial number or numbers of the certificates to which said  bill  or
memorandum  applies,  as  provided by section two hundred and seventy of
this chapter.  It shall also retain and keep all surrendered or canceled
shares or certificates and all memoranda and any  declarations  relating
to  the  sale  or  transfer of any thereof.   All such books of account,
transfer ledgers, registers and certificate books, shall be retained and
kept as aforesaid for a period of at least four years subsequent to  the
date  of  the  last  entry made therein as herein required; and all such
surrendered  or  canceled  shares   or   certificates,   memoranda   and
declarations  relating to the sale or transfer of shares or certificates
taxable under this article, shall be retained and kept for a  period  of
at  least  four  years  from  the date of the delivery thereof.  For the
purpose of ascertaining whether the tax imposed by this article has been
paid,  all  such  books  of  account,   transfer   ledgers,   registers,
certificate  books,  surrendered  or canceled shares or certificates and
memoranda and declarations relating to the  sale  or  transfer  thereof,
shall  at all times between the hours of ten o'clock in the forenoon and
three o'clock in the afternoon,  except  Saturdays,  Sundays  and  legal
holidays,  be  open  to  examination  by  the tax commission or its duly
authorized representative.   The  tax  commission  may  consent  to  the
destruction  of  all  surrendered or canceled shares or certificates and
all memoranda and any declarations relating  to  the  sale  or  transfer
thereof  provided  the  tax commission has completed an examination with
respect to the transactions to which such documents relate, is satisfied
that the original of such documents  no  longer  need  be  preserved,  a
record  of  such  documents  is  recorded,  copied  or reproduced by any
process which accurately  reproduces  or  forms  a  durable  medium  for
reproducing  the  original and such record is retained for the remainder
of the applicable four year  period  specified  above  and  is  open  to
examination  by  the tax commission on the days and during the hours set
forth above.
The tax commission by a special proceeding in the  supreme  court  may
enforce  its  right to examine such books of account, bills or memoranda
of sale or transfer, transfer ledger, register and certificate books and
surrendered or canceled shares or certificates  and  declarations  or  a
record  of  such  shares  or  certificates  and  all  memoranda  and any
declarations relating to the sale or transfer thereof  recorded,  copied
or reproduced as herein provided.  If the tax commission ascertains that
the  tax  provided  for  in this article has not been paid, the attorney
general, at the instance of the commission, shall bring an action in its
name as such tax commission, in any court of competent jurisdiction  for
the  recovery  of  such  tax  and for any penalty incurred by any person
under the provisions of this article.
Every person, firm, company, association or  corporation  or  business
conducted  by a trustee or trustees that shall fail to keep such book of
account or bills of memoranda of sale or transfer, or  transfer  ledger,
register  or  certificate  book  or  surrendered  or  canceled shares or
certificates or declarations as herein required, or who alters, cancels,
obliterates or destroys any part  of  said  records,  except  as  herein
permitted,  or  makes  any  false  entry therein, or who shall refuse to
permit the tax commission  or  any  of  its  authorized  representatives

freely  to  examine  any  of said books, records or papers at any of the
times herein provided, or who shall in any other respect violate any  of
the  provisions  of this section shall be deemed guilty of a misdemeanor
and  on  conviction  thereof shall for each and every such offense pay a
fine of not less than five hundred dollars nor more than  five  thousand
dollars,  or  be imprisoned not less than three months nor more than one
year, or both in the discretion of the court.