§ 276 — Power of tax commission

§ 276. Power of tax commission. Every person, firm, company,\nassociation, corporation or business conducted by a trustee or trustees,\nengaged in whole or in part in the making or negotiating of sales,\nagreements to sell, deliveries or transfers of shares or certificates\ntaxable under this article, or conducting or transacting a brokerage\nbusiness, hereinafter in this section called "broker", shall keep or\ncause to be kept at some accessible place within the state of New York,\na just and true book of account, in such form as may be prescribed by\nthe tax commission, wherein shall be plainly and legibly recorded in\nseparate columns (1) unless provided otherwise by rules and regulations\nof the tax commission, providing for its recording in some other manner\nin records kept by such broker, the date of receipt of every order for\nevery sale, agreement to sell, delivery or transfer of such shares or\ncertificates together with the name, class and number of shares to which\nsuch order relates and the name and address (or other identification\nwhich refers to records kept by such broker containing such name and\naddress) of the person placing the order; (2) the date of making every\nsale, agreement to sell, delivery or transfer of such shares or\ncertificates, the name and the number of shares thereof, the selling\nprice, the date of the order or orders to which such transaction\nrelates; (3) the name and address (or other identification which refers\nto records kept by such broker, containing such name and address) of the\nseller or transferrer, and his resident or nonresident status, as\ndefined in the provisions of section two hundred seventy-a of this\nchapter; (4) the name of the purchaser or transferee; (5) the face value\nof the adhesive stamps affixed; and (6) the identifying number of the\nbill or memorandum of sale used as provided for by section two hundred\nand seventy of this chapter. This book shall also have recorded therein\neach separate purchase of stock transfer stamps, showing the date, the\namount and from whom purchased.\n Every association, company or corporation or business conducted by a\ntrustee or trustees shall keep or cause to be kept at some accessible\nplace within the state of New York a stock certificate book and a just\nand true book of account, transfer ledger or register, in such form as\nmay be prescribed by the tax commission, wherein shall be plainly and\nlegibly recorded in separate columns, the date of making every transfer\nof stock, or other certificates included within this article, the name\nand number of shares thereof, the serial number of each surrendered\ncertificate, the name of the parties surrendering such certificate, the\nserial number of the certificate issued in exchange therefor, the number\nof shares covered by said certificate, the name of the party to whom\nsaid certificate was issued and the face value of the stamps attached in\npayment of the tax on the transfer of the certificate. Evidence of the\npayment of the tax provided for by sections two hundred and seventy and\ntwo hundred and seventy-a of this chapter shall be provided in one of\nthe following manners and not otherwise, to wit:\n (a) By attaching to the certificate surrendered for transfer, the\nstamps required for and any declaration permitted by paragraph (c) of\nsubdivision one of section two hundred seventy-a of this chapter with\nrespect to such transfer, or\n (b) If the stamps and any such declaration are not attached to the\ncertificate, but are attached to the bill or memorandum of sale\neffecting or evidencing the transfer of such certificate, by attaching\nto said certificate the said bill or memorandum of sale with stamps and\ndeclaration, if any, attached, or\n (c) If the stamps and declaration, if any, covering the transfer are\nattached to a bill or memorandum effecting a transfer of one or more\ncertificates or to one or more certificates included in said transfer, a\nnotation must be made upon such certificates, bill or memorandum, as the\ncase may be, clearly specifying and identifying the certificate or\ncertificates to the sale or transfer of which the said stamps and\ndeclaration apply, or\n (d) If the bill or memorandum bearing such stamps and declaration is\nnot attached to the surrendered certificate or certificates to which it\napplies, a notation must be made upon such bill or memorandum stating\nthe serial number or numbers of the certificates to which said bill or\nmemorandum applies, as provided by section two hundred and seventy of\nthis chapter. It shall also retain and keep all surrendered or canceled\nshares or certificates and all memoranda and any declarations relating\nto the sale or transfer of any thereof. All such books of account,\ntransfer ledgers, registers and certificate books, shall be retained and\nkept as aforesaid for a period of at least four years subsequent to the\ndate of the last entry made therein as herein required; and all such\nsurrendered or canceled shares or certificates, memoranda and\ndeclarations relating to the sale or transfer of shares or certificates\ntaxable under this article, shall be retained and kept for a period of\nat least four years from the date of the delivery thereof. For the\npurpose of ascertaining whether the tax imposed by this article has been\npaid, all such books of account, transfer ledgers, registers,\ncertificate books, surrendered or canceled shares or certificates and\nmemoranda and declarations relating to the sale or transfer thereof,\nshall at all times between the hours of ten o'clock in the forenoon and\nthree o'clock in the afternoon, except Saturdays, Sundays and legal\nholidays, be open to examination by the tax commission or its duly\nauthorized representative. The tax commission may consent to the\ndestruction of all surrendered or canceled shares or certificates and\nall memoranda and any declarations relating to the sale or transfer\nthereof provided the tax commission has completed an examination with\nrespect to the transactions to which such documents relate, is satisfied\nthat the original of such documents no longer need be preserved, a\nrecord of such documents is recorded, copied or reproduced by any\nprocess which accurately reproduces or forms a durable medium for\nreproducing the original and such record is retained for the remainder\nof the applicable four year period specified above and is open to\nexamination by the tax commission on the days and during the hours set\nforth above.\n The tax commission by a special proceeding in the supreme court may\nenforce its right to examine such books of account, bills or memoranda\nof sale or transfer, transfer ledger, register and certificate books and\nsurrendered or canceled shares or certificates and declarations or a\nrecord of such shares or certificates and all memoranda and any\ndeclarations relating to the sale or transfer thereof recorded, copied\nor reproduced as herein provided. If the tax commission ascertains that\nthe tax provided for in this article has not been paid, the attorney\ngeneral, at the instance of the commission, shall bring an action in its\nname as such tax commission, in any court of competent jurisdiction for\nthe recovery of such tax and for any penalty incurred by any person\nunder the provisions of this article.\n Every person, firm, company, association or corporation or business\nconducted by a trustee or trustees that shall fail to keep such book of\naccount or bills of memoranda of sale or transfer, or transfer ledger,\nregister or certificate book or surrendered or canceled shares or\ncertificates or declarations as herein required, or who alters, cancels,\nobliterates or destroys any part of said records, except as herein\npermitted, or makes any false entry therein, or who shall refuse to\npermit the tax commission or any of its authorized representatives\nfreely to examine any of said books, records or papers at any of the\ntimes herein provided, or who shall in any other respect violate any of\nthe provisions of this section shall be deemed guilty of a misdemeanor\nand on conviction thereof shall for each and every such offense pay a\nfine of not less than five hundred dollars nor more than five thousand\ndollars, or be imprisoned not less than three months nor more than one\nyear, or both in the discretion of the court.\n