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SECTION 270
Amount of tax
Tax (TAX) CHAPTER 60, ARTICLE 12
§ 270. Amount of tax. 1. There is hereby imposed and shall
immediately accrue and be collected a tax, as herein provided, on all
sales, or agreements to sell, or memoranda of sales and all deliveries
or transfers of shares or certificates of stock, or certificates of
rights to stock, or certificates of interest in property or
accumulations, or certificates of deposit representing certificates
taxable under this article, in any domestic or foreign association,
company or corporation, or certificates of interest in business
conducted by a trustee or trustees, made after the first day of June,
nineteen hundred five, whether made upon or shown by the books of the
association, company, corporation, or trustee, or by any assignment in
blank, or by any delivery, or by any paper or agreement or memorandum or
other evidence of sale or transfer, whether intermediate or final, and
whether investing the holder with the beneficial interest in or legal
title to said stock, or other certificates taxable hereunder, or merely
with the possession or use thereof for any purpose, or to secure the
future payment of money, or the future transfer of any such stock, or
certificates. The purchase, redemption or other reacquisition of its
own shares by a corporation is subject to tax under this article unless
such shares are cancelled on reacquisition pursuant to the provisions of
section five hundred fifteen of the business corporation law, or unless
within one year of the date of such purchase, redemption or other
reacquisition, such shares are cancelled by an appropriate amendment to
the corporation's certificate of incorporation or by action of the board
of directors of such corporation.

2. Except as otherwise provided by section two hundred seventy-a of
this chapter, the tax imposed by this section shall be two and one-half
cents for each share, except in cases where the shares or certificates
are sold, in which cases the tax shall be at the rate of one and
one-quarter cents for each share where the selling price is less than
five dollars per share; two and one-half cents for each share where the
selling price is five dollars or more per share and less than ten
dollars per share; three and three-quarters cents for each share where
the selling price is ten dollars or more per share and less than twenty
dollars per share and five cents for each share where the selling price
is twenty dollars or more per share.

3. It shall be the duty of the person or persons making or
effectuating the sale or transfer, including the person or persons to
whom the sale or transfer is made, to pay the tax provided by this
article; provided, however, that this subdivision shall not apply to any
sale or transfer wherein the vendor or transferor is a governmental
entity or international organization which is not subject to the tax.

4. The payment of such tax shall be denoted by an adhesive stamp or
stamps affixed as follows: In the case of a sale or transfer, where the
evidence of the transaction is shown only by the books of the
association, company, corporation or trustee, the stamp shall be placed
upon such books, and it shall be the duty of the person making or
effectuating such sale or transfer to procure and furnish to the
association, company, corporation or trustee the requisite stamps, and
of such association, company, corporation or trustee to affix and cancel
the same. Where the transaction is effected by the delivery or transfer
of a certificate, the stamp shall be placed upon the surrendered
certificate and canceled; and in cases of an agreement to sell, or where
the sale is effected by delivery of the certificate assigned in blank,
there shall be made and delivered by the seller to the buyer, a bill or
memorandum of such sale to which the stamp provided for by this article
shall be affixed and canceled. Every such bill or memorandum of sale or
agreement to sell shall show the date of the transaction which it
evidences, the name of the seller, the stock, or other certificate, to
which it relates, and the number of shares thereof. All such bills or
memoranda of sale shall bear a number upon the face thereof and no more
than one such bill or memorandum of sale made by the seller on any given
day shall bear the same number. The aforesaid identification number of
the bill or memorandum of sale shall in all cases be entered and
recorded in the book of account required to be kept by section two
hundred seventy-six of this chapter; and no further tax is hereby
imposed upon the delivery of the certificate, or upon the actual issue
of a new certificate when the original certificate is accompanied by the
duly stamped memorandum of sale as herein provided.

5. The tax imposed by this section shall not apply to the following,
provided the transaction in each case is accompanied by a certificate
setting forth the facts or such other certificate or record as the tax
commission may require:

(a) A sale, agreement to sell, memorandum of sale, or delivery or
transfer of shares or certificates of stock or any certificates taxable
under this section, made on an organized securities exchange within this
state registered with the securities and exchange commission of the
United States, of less than one hundred shares and less than the unit of
trading on such exchange, by any person, firm, company, association or
corporation registered with such exchange, and engaged thereon, as
dealer in less than the unit of trading;

(b) An agreement evidencing the deposit of certificates as collateral
security, which certificates are not actually sold, or such certificates
so deposited, or transfers of such certificates to the person with whom
they are deposited as collateral security or to a nominee of such person
or from one nominee of such person to another, provided the same
continue to be held by such person or nominee or nominees as collateral
security as aforesaid, or the retransfer of such certificates to the
depositor;

(c) Transfers or deliveries of certificates pursuant to a statutory
provision, to a trustee or public officer to secure the performance of
obligations, or retransfers or redeliveries of such certificates to the
transferer or depositor;

(d) Transfers of certificates from the name of a fiduciary to a
nominee of such fiduciary, or from one nominee of such fiduciary to
another, provided the same continue to be held by such nominee or
nominees for the same purpose for which they would be held if retained
by such fiduciary, or from the nominee to such fiduciary;

(e) Transfers of certificates from the name of the owner thereof to a
custodian where the certificates are to be held or disposed of by such
custodian for and subject to the instructions of the owner, or from the
name of such custodian to the owner by whom the certificates were
transferred to such custodian, or from the name of such custodian to a
nominee of such custodian, or from one nominee of such custodian to
another, provided the same continue to be held by such nominee or
nominees for the same purpose for which they would be held if retained
by such custodian, or from the nominee to such custodian;

(f) Mere loans of stock or certificates, or the return thereof;

(g) Deliveries or transfers from the name of the owner to a broker
for sale, or deliveries by or transfers from the name of a broker to a
customer for whom and upon whose order he has purchased the same;

(h) Deliveries or transfers of shares or certificates from a
corporation to its registered nominee, or from one registered nominee of
such corporation to another such nominee, provided the shares or
certificates continue to be held by such nominee for the same purpose
for which they would be held if retained by such corporation, or from
such nominee to such corporation.

(i) Transfers or deliveries of shares or certificates upon the
instructions of a broker, whether doing business as a corporation,
partnership or individually, from his name or from the name of his
customer to such broker's registered nominee for the purpose of holding
such shares or certificates subject to the instructions of a clearing
corporation affiliated with any securities exchange in this state, as
agent for such broker, and transfers or deliveries upon the instructions
of such clearing corporation from the name of such broker's registered
nominee to such broker or customer. For the purposes of this paragraph,
the term "broker" shall include any banking corporation or trust company
incorporated under the laws of this or another state of the United
States and any bank organized under the laws of the United States.

(j) Transfers or deliveries of shares or certificates upon the
instructions of a depositor in a system for the central handling of
securities (including the clearing and settling of securities
transactions) (a) established by a national securities exchange or
association registered with the securities and exchange commission of
the United States or (b) maintained by a clearing corporation as defined
in section 8--102 of the uniform commercial code, from the name of such
depositor or his nominee or from the name of his customer or the nominee
of such customer to the registered nominee of any such system for the
purpose of holding such shares or certificates, as agent for such
depositor, and transfers or deliveries upon the instructions of any such
depositor from the name of the registered nominee of such system to same
depositor, customer or nominee. For the purposes of this paragraph, a
"depositor" shall include such securities exchanges or associations,
registered under a statute of the United States such as the Securities
Exchange Act of 1934 as amended, and their affiliated clearing
corporations, such banks, trust companies, investment companies,
insurance companies and other financial organizations as are subject to
supervision or regulation pursuant to the provisions of federal or state
banking laws or state insurance laws and such brokers, dealers and
investment companies as are registered under the Securities Exchange Act
of 1934 as amended, or the Investment Company Act of 1940 as amended, if
the foregoing individuals or organizations have been accepted by such
system for the central handling of securities as participants therein.

(k) Transfers or deliveries of shares or certificates upon the
instructions of a depositor in a system for the central handling of
securities as described in paragraph (j) of this subdivision from the
name of the nominee of any such system to the name of the nominee of
another such system, provided the same continue to be held by the
nominee of such other system for the same purpose as previously held for
such depositor by the nominee of such other system.

(l) Where the sale, agreement of sale, memorandum of sale, delivery
or transfer of a security is effected in a manner which would not
otherwise subject such transaction to a tax, the tax shall not apply
solely by reason of the receipt or payment of cash in this state as part
of a system for the central handling of securities described in
paragraph (j) of this subdivision or the making of an accounting,
bookkeeping or similar entry in records maintained in this state as part
of such system. The tax commission shall prescribe rules and regulations
to effectuate the purposes of this paragraph and paragraphs (i), (j) and
(k) of this subdivision, and shall have all the rights and powers as set
forth in section two hundred seventy-six of this chapter to examine any
transactions or records of any nature of such system.

6. The tax imposed by this section shall not apply to shares or
certificates of stock, or certificates of rights to stock, or
certificates of deposit representing certificates of the character taxed
by this article, in any domestic association, company or corporation,
even though a record of the transfer is made in the stock book kept in
compliance with section ten of the stock corporation law, if the
transfer is made upon the books of such association, company or
corporation regularly kept at a transfer office or by a transfer agent
outside the state, provided the keeping of such books outside the state
is necessary or convenient for the transaction of the ordinary business
affairs of such association, company or corporation and is approved by
the tax commission, and neither the sale, nor the agreement to sell, nor
the memorandum of sale, nor the delivery is made in this state and no
act necessary to effect the transfer (other than the making of a record
in the stock book kept in compliance with section ten of the stock
corporation law) is done in this state.

7. As used in this section, the term "registered nominee" means any
person registered with the tax commission in accordance with such rules
and regulations as it shall prescribe.

8. Nothing in this section contained shall be construed to impose a
tax upon sales, agreements to sell, memoranda of sales, deliveries or
transfers of shares or certificates

(a) issued under a noncorporate investment trust agreement of the
fixed type and no such sale, agreement to sell, memorandum of sale,
delivery or transfer shall result in imposing a tax under this section
on the securities held in such an investment trust; or

(b) of an investment trust between the investment trust and an
underwriter, between an underwriter and a dealer in securities or
between an underwriter or dealer and an investor. As used in this
paragraph, the term "investment trust" means an investment trust of the
management type, the shareholders of which are, upon reasonable notice,
entitled to require the investment trust to redeem or repurchase their
shares or certificates for their proportionate interest in the property
of the investment trust, or the cash equivalent thereof, less a discount
of not more than three per centum thereof, and the term "underwriter"
means a person, firm or corporation who has entered into an agreement
with such investment trust to effectuate, alone or through others, sales
of shares or certificates of the investment trust.