N.Y. Tax Law § 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.