N.Y. Tax Law § 281-A — Alternative method of collection

§ 281-a. Alternative method of collection. 1. Notwithstanding any\nother provisions of this article, the tax commission may by rules,\nregulations or instructions provide that the taxes imposed by this\narticle on any sale, delivery or transfer executed or effected within\nthis state by any member of any securities exchange located within this\nstate which is registered with the securities and exchange commission of\nthe United States or by any member of a qualified securities exchange\nshall be paid to or through such exchange located within this state or\nin the discretion of the tax commission to or through its affiliated\nclearing corporation by the person, firm, company or association\nexecuting or effecting the sale, delivery or transfer, without the use\nof the stamps prescribed by this article; provided that if such taxes\nare paid through such exchange located within this state or through an\naffiliated clearing corporation, payment by any member of a qualified\nsecurities exchange shall be made to a qualified securities exchange or\na qualified clearing corporation which has agreed to abide by the rules,\nregulations and instructions of the state tax commission and which the\ncommission has authorized to accept payment and any such qualified\nsecurities exchange or qualified clearing corporation shall pay such\ntaxes to such exchange located within this state or its affiliated\nclearing corporation. The taxes imposed by this article on any sale or\ntransfer executed or effected within this state by any person, firm,\ncorporation, company or association required to be registered with the\nattorney general of the state of New York as a dealer in securities,\nother than upon any such exchange, may also be paid without the use of\nthe stamps prescribed by this article, under such rules and regulations\nas the tax commission may prescribe, to any agency duly authorized by\nthe tax commission or to the tax commission, by the person, firm,\ncompany, corporation or association executing or effecting such sale or\ntransfer without the use of the stamps prescribed by this article. In\nsuch event, a written report shall be made to such exchange located\nwithin this state, affiliated clearing corporation, authorized agency or\nthe tax commission for each business day or such period as the tax\ncommission may prescribe, by each such person, corporation, firm,\ncompany or association showing the amount of tax payable on all\ntransactions taxable under this article and such other reasonable\ninformation as the tax commission may prescribe, provided, however, that\nif such taxes are paid through such exchange located within this state\nor its affiliated clearing corporation by a member of a qualified\nsecurities exchange, such written report shall be made to the qualified\nsecurities exchange or qualified clearing corporation, and such\nqualified securities exchange or qualified clearing corporation shall\nrender a report to such exchange located within this state or its\naffiliated clearing corporation through which such taxes are paid\nshowing the amount of tax payable on all transactions taxable under this\narticle and such other reasonable information as the tax commission may\nprescribe. Such reports shall be preserved for such period as the tax\ncommission may prescribe. At the time of making such reports, the\namount of tax shown to be due thereon shall be paid to the tax\ncommission or for the account of the tax commission to or through such\nexchange located within this state, affiliated clearing corporation or\nauthorized agency and shall be remitted daily, unless otherwise\nprescribed by the tax commission, by such exchange, affiliated clearing\ncorporation or authorized agency to the tax commission together with a\nreport in such form as may be prescribed by the tax commission. The\npayment of the tax to or through an exchange, affiliated clearing\ncorporation, authorized agency or the tax commission on each transaction\nas hereinbefore provided shall be evidenced by a certification in such\nform and manner as the tax commission may prescribe. In the event that\ncollection of the tax is prescribed without the use of stamps as\nhereinbefore provided, all of the provisions of this article not\ninconsistent with this section shall apply.\n 2. For the purposes of this article the following terms shall have\nthe following meanings: (a) An "affiliated clearing corporation"\nshall, if it has a place of business in this state, include a clearing\ncorporation as defined in section 8--102 of the uniform commercial code\nand a clearing corporation affiliated with a national securities\nexchange or association registered with the securities and exchange\ncommission of the United States, and the persons, firms, corporations,\ncompanies or associations by whom taxes may be paid without the use of\nstamps may, in the discretion of the tax commission, include depositors\nin the system maintained by such clearing corporation.\n (b) A "qualified securities exchange" shall include any securities\nexchange located outside this state or any national securities\nassociation which is registered with the securities and exchange\ncommission of the United States and which is a participant in an\nintermarket linkage system in which one or more national securities\nexchanges located within this state is a participant of such system.\n (c) A "qualified clearing corporation" shall include a clearing\ncorporation as defined in section 8--102 of the uniform commercial code\nwhich is affiliated with a qualified securities exchange.\n