N.Y. Tax Law § 272: Penalty for failure to pay tax; liability for tax of agent or broker

§ 272. Penalty for failure to pay tax; liability for tax of agent or

broker. 1. Except as provided in subdivision three of this section, any

person or persons liable to pay the tax by this article imposed, and any

one who acts in the matter as agent or broker for such person or

persons, who shall make any sale, transfer or delivery of shares or

certificates taxable under this article without paying the tax by this

article imposed, and any person who shall in pursuance of any sale,

transfer or agreement, deliver any certificate or evidence of the sale

or transfer of or agreement to sell any such certificate, or bill or

memorandum thereof, or who shall transfer or cause the same to be

transferred upon the books or records of the association, company,

corporation, or business conducted by a trustee or trustees, and any

association, company, corporation or business conducted by a trustee or

trustees, whose stock or other certificates taxable hereunder is sold or

transferred, which shall transfer or cause the same to be transferred

upon its books, without having affixed thereto the stamps provided for

in this article, and where required by the provisions of this article, a

declaration as prescribed by paragraph (c) of subdivision one of section

two hundred seventy-a of this article shall be deemed guilty of a

misdemeanor, and upon conviction thereof shall pay a fine of not less

than five hundred nor more than one thousand dollars, or be imprisoned

for not more than six months or by both such fine and imprisonment, in

the discretion of the court.

2. Any person who acts as agent or broker for a person liable to pay

the tax by this article imposed, who shall be subject to or liable for

the penalty provided for by subdivision one of this section shall,

regardless of whether he has been prosecuted for or acquitted of such

criminal liability, in addition to such criminal liability, be liable

for the payment of the tax, and such liability may be enforced in the

same manner as any liability for tax imposed by this article, and its

determination and collection shall be effected pursuant to and subject

to the provisions of sections two hundred seventy-nine-a, two hundred

seventy-nine-b and two hundred eighty-one of this chapter. The burden,

in any hearing held pursuant to such section two hundred seventy-nine-a,

of proving the facts to show the absence of liability for the tax

imposed by this subdivision upon such agent or broker, shall be upon

such agent or broker.

3. The penalties provided by subdivision one of this section shall not

apply to any agent or broker or to any other person who shall perform

any of the acts set forth in such subdivision, in good faith, in

reliance upon a declaration furnished pursuant to paragraph (c) of

subdivision one of section two hundred seventy-a of this chapter, as to

which declaration such broker, agent or other person, before such act

had received no notice of cancellation of such declaration pursuant to

the provisions of clause (iii) of subparagraph (2) of such paragraph and

has no knowledge or reasonable grounds to believe that the status of

such nonresident as a nonresident has changed.