2006 New York Code - 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.