New York Laws
Article 12 - Tax on Transfers of Stock and Other Corporate Certificates
276 - Power of Tax Commission.

(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.