N.Y. Tax Law § 281-a: Alternative method of collection

§ 281-a. Alternative method of collection. 1. Notwithstanding any

other provisions of this article, the tax commission may by rules,

regulations or instructions provide that the taxes imposed by this

article on any sale, delivery or transfer executed or effected within

this state by any member of any securities exchange located within this

state which is registered with the securities and exchange commission of

the United States or by any member of a qualified securities exchange

shall be paid to or through such exchange located within this state or

in the discretion of the tax commission to or through its affiliated

clearing corporation by the person, firm, company or association

executing or effecting the sale, delivery or transfer, without the use

of the stamps prescribed by this article; provided that if such taxes

are paid through such exchange located within this state or through an

affiliated clearing corporation, payment by any member of a qualified

securities exchange shall be made to a qualified securities exchange or

a qualified clearing corporation which has agreed to abide by the rules,

regulations and instructions of the state tax commission and which the

commission has authorized to accept payment and any such qualified

securities exchange or qualified clearing corporation shall pay such

taxes to such exchange located within this state or its affiliated

clearing corporation. The taxes imposed by this article on any sale or

transfer executed or effected within this state by any person, firm,

corporation, company or association required to be registered with the

attorney general of the state of New York as a dealer in securities,

other than upon any such exchange, may also be paid without the use of

the stamps prescribed by this article, under such rules and regulations

as the tax commission may prescribe, to any agency duly authorized by

the tax commission or to the tax commission, by the person, firm,

company, corporation or association executing or effecting such sale or

transfer without the use of the stamps prescribed by this article. In

such event, a written report shall be made to such exchange located

within this state, affiliated clearing corporation, authorized agency or

the tax commission for each business day or such period as the tax

commission may prescribe, by each such person, corporation, firm,

company or association showing the amount of tax payable on all

transactions taxable under this article and such other reasonable

information as the tax commission may prescribe, provided, however, that

if such taxes are paid through such exchange located within this state

or its affiliated clearing corporation by a member of a qualified

securities exchange, such written report shall be made to the qualified

securities exchange or qualified clearing corporation, and such

qualified securities exchange or qualified clearing corporation shall

render a report to such exchange located within this state or its

affiliated clearing corporation through which such taxes are paid

showing the amount of tax payable on all transactions taxable under this

article and such other reasonable information as the tax commission may

prescribe. Such reports shall be preserved for such period as the tax

commission may prescribe. At the time of making such reports, the

amount of tax shown to be due thereon shall be paid to the tax

commission or for the account of the tax commission to or through such

exchange located within this state, affiliated clearing corporation or

authorized agency and shall be remitted daily, unless otherwise

prescribed by the tax commission, by such exchange, affiliated clearing

corporation or authorized agency to the tax commission together with a

report in such form as may be prescribed by the tax commission. The

payment of the tax to or through an exchange, affiliated clearing

corporation, authorized agency or the tax commission on each transaction

as hereinbefore provided shall be evidenced by a certification in such

form and manner as the tax commission may prescribe. In the event that

collection of the tax is prescribed without the use of stamps as

hereinbefore provided, all of the provisions of this article not

inconsistent with this section shall apply.

2. For the purposes of this article the following terms shall have

the following meanings: (a) An "affiliated clearing corporation"

shall, if it has a place of business in this state, include a clearing

corporation as defined in section 8--102 of the uniform commercial code

and a clearing corporation affiliated with a national securities

exchange or association registered with the securities and exchange

commission of the United States, and the persons, firms, corporations,

companies or associations by whom taxes may be paid without the use of

stamps may, in the discretion of the tax commission, include depositors

in the system maintained by such clearing corporation.

(b) A "qualified securities exchange" shall include any securities

exchange located outside this state or any national securities

association which is registered with the securities and exchange

commission of the United States and which is a participant in an

intermarket linkage system in which one or more national securities

exchanges located within this state is a participant of such system.

(c) A "qualified clearing corporation" shall include a clearing

corporation as defined in section 8--102 of the uniform commercial code

which is affiliated with a qualified securities exchange.