olates the provisions of subdivision one of this section shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter.

(b) Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 9. Subdivision eight of section two hundred eleven of such law, as amended by chapter six hundred thirteen of the laws of nineteen hundred seventy-six, is amended to read as follows:

8. (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any tax commissioner, any officer or employee of the department of taxation and finance, or any person who, pursuant to this section, is permitted to inspect any report, or to whom any information contained in any report is furnished, or any person engaged or retained by such department on an independent contract basis, or any person who in any manner may acquire knowledge of the contents of a report filed pursuant to this article, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report under this article. The officers charged with the custody of such reports shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the state or the tax commission in an action or proceeding under the provisions of this chapter or in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the tax commission is a party or a claimant, or on behalf of any party to any action or proceeding under the provisions of this article when the reports or facts shown thereby are directly involved in such action or proceeding, in any of which events the court may require the production of, and may admit in evidence, so much of said reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. The tax commission may, nevertheless, publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in section one thousand eighty-nine of this chapter. Nothing herein shall be construed to prohibit the delivery to a corporation or its duly authorized representative of a copy of any report filed by it, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports and the items thereof; or the publication of delinquent lists showing the names of taxpayers who have failed to pay their taxes at the time and in the manner provided by section two hundred thirteen of this chapter together with any relevant information which in the opinion of the tax commission may assist in the collection of such delinquent taxes; or the inspection by the attorney general or other legal representatives of the state of the report of any corporation which shall bring action to set aside or review the tax based thereon, or against which an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted; or the inspection of the reports of any corporation by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by such corporation under this article; and nothing in this chapter shall be construed to prohibit the publication of the percentage of capital, issued capital stock, gross premiums net income of any corporation which may be required to be allocated within the state for purposes of the tax imposed by this article. (b) (i) Any [offense against the foregoing shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the court and if the offender be an] officer or employee of the state [he] who willfully violates the provisions of paragraph (a) of this subdivision shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter.

or

(ii) Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

(c) Notwithstanding any provisions of this subdivision, the tax commission may permit the secretary of the treasury of the United States or his delegates, or the proper officer of any other state charged with tax administration, or the authorized representative of either such officer, to inspect the reports filed under this article, or may furnish to such officer or his authorized representative an abstract of any such report EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

or

supply information concerning an item contained in any such report, or disclosed by an investigation of tax liability under this article, but such permission shall be granted or such information furnished to such officer or his representative only if the laws of the United States or of such other state, as the case may be, grant substantially similar privileges to the commission or officer of this state charged with the administration of the tax imposed by this article and such information is to be used for tax purposes only; and provided further the commissioner of taxation and finance may furnish to the secretary of the treasury of the United States or his delegates such reports filed under this article and other tax information, as he may consider proper, for use in court actions or proceedings under the internal revenue code, whether civil or criminal, where a written request there for has been made to the commissioner of taxation and finance by the secretary of the treasury or his delegates provided the laws of the United States grant substantially similar powers to the secretary of the treasury or his delegates. Where the commissioner of taxation and finance has so authorized use of reports or other tax information in such actions or proceedings, officers and employees of the department of taxation and finance may testify in such actions or proceedings in respect to such reports or other tax information; and provided further that such commission may furnish any municipality with such information contained in the reports filed under this article as it may consider proper for use in any certiorari or condemnation proceeding.

§ 10. Subdivision two of section two hundred nineteen-oo of such law, as amended by chapter two hundred forty-six of the laws of nineteen hundred sixty-four, is amended to read as follows:

2. (a) Any offense against subdivision one of this section shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the court, and if the offender be an] officer or employee of the state [he] who willfully violates the provisions of subdivision one of this section shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter.

(b) Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 11. The third and fourth unnumbered paragraphs of section two hundred forty-nine-v of such law, as amended by chapter six hundred fortyfour of the laws of nineteen hundred forty-nine, are amended to read as follows:

The executor shall within sixty days after the entry of the order directing the appraisal file with the appraiser a return under oath containing such information as may be necessary for the purpose of appraising the estate. The time within which such return is to be filed may be extended by the appraiser for good cause shown. It may be required that such return be made in triplicate and the executor shall also be required to furnish such supplemental returns or additional data as may be necessary. If the executor is unable to make a complete return as to any part of the gross estate of the decedent he shall include in his return a description of such part and the name of every person holding a legal or beneficial interest therein, and upon notice from the appraiser such person shall in like manner make a return as to such part of the gross estate. Failure to make any return as herein provided shall subject the executor or other person required to make the same to a penalty of one thousand dollars, to be recovered in an action brought by the tax commission[, and if such failure be with intent to evade the tax, the executor or such other person shall be guilty of a misdemeanor]; provided, however, that upon the return being filed the surrogate in his discretion may waive [the] such one thousand dollar penalty in any case where there was no intent to evade the tax. In case of failure to file a return, the surrogate or appraiser may determine the value of the property of the estate which is subject to tax on the basis of the best information available, subject to correction from time to time, if it appears that a further tax is due.

[An executor or other person required to make a return as herein provided who, with intent to evade the tax or any requirement of this article or any lawful requirement of the tax commission, shall make, render, sign or certify any false or fraudulent return or statement, oath or shall supply any false or fraudulent information or shall wilfully fail to disclose all of the property of the estate which is subject to tax, shall be guilty of a misdemeanor and shall, upon conviction, be fined not to exceed five thousand dollars or be imprisoned not

to exceed one year, or both, in the discretion of the court. ] Crossreference: For criminal penalties, see article thirty-seven of this chapter.

12. The concluding paragraph of section two hundred forty-nine-cc of such law, as amended by chapter two hundred twenty-six of the laws of nineteen hundred seventy-seven, is amended to read as follows:

[Any person who enters a safe deposit box of a decedent, or a box standing in the joint names of such a decedent and one or more persons, with knowledge of the death of the lessee of such box, which entry results in an evasion of the tax imposed by this article shall be guilty of a misdemeanor and shall, upon conviction, be fined not to exceed five thousand dollars or be imprisoned not to exceed one year, or both, in the discretion of the court. ] Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 13. Section two hundred sixty-six of such law is amended by adding a new undesignated paragraph at the end thereof to read as follows: Cross-reference: For criminal penalties, see article thirty-seven of

this chapter.

§ 14. Subdivisions two and three of section two hundred eighty-nine-b of such law are repealed and a new subdivision four is added to read as follows:

4. Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 15. Subdivision (b) of section three hundred fourteen of such law, as added by chapter four hundred of the laws of nineteen hundred eightythree, is amended to read as follows:

(b) Penalty for violation. -(1) Any [offense against subdivision (a) of this section shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the court and if the offender be an] officer or employee of the state [he] who willfully violates the provisions of subdivision (a) of this section shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter. (2) Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 16. Subdivision three of section four hundred thirty-seven of such law, as added by chapter ninety-four of the laws of nineteen hundred thirty-four, is amended to read as follows:

3. (a) Any offense against subdivisions one or two of this section shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the court, and if the offender be an] officer or employee of the state [he] who willfully violates the provisions of subdivision one or two of this section shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter.

(b) Cross-reference: For criminal penalties, see article thirty-seven of this chapter. § 17. Section four hundred thirty-eight of such law, as amended by chapter eight hundred forty-three of the laws of nineteen hundred eighty, is amended to read as follows:

438. Sale of stamps authorized. 1. Notwithstanding any other provision of this article, the tax commission may by regulation provide that the taxes on alcoholic beverages shall be collected through the sale of stamps, to be prepared and sold by it. The tax commission shall have power to determine the form and denominations of such stamps and to prescribe by regulation the manner and time of affixation of such stamps to containers of alcoholic beverages. It may provide for the sale of such stamps by duly authorized agents, but such stamps shall not be sold by any person not so authorized. The penalties and interest for failure to affix stamps, in case the same are prescribed by the tax commission, shall be the same as the penalties and interest in this article provided for failure to pay taxes. If stamps are so prescribed, any alcoholic beverages in containers to which stamps are required to be affixed shall be subject to confiscation by any duly authorized representative of tax commission, any peace officer, acting pursuant to his special duties, or any police officer in case the stamps are not so affixed. Alcoholic beverages so confiscated may be sold by the tax commission to any person holding a proper license granted by the state liquor authority, and the proceeds of any such sale shall be paid into the EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

the

treasury of the state[. In case stamps are so prescribed, any person who shall counterfeit the same or who shall wilfully remove or alter or knowingly permit to be removed or altered the cancellation or defacing marks required to be placed upon any stamp with intent to use such stamp, or who shall open any container of alcoholic beverages without first destroying the stamp affixed thereto, or who shall knowingly or wilfully buy, prepare for use, use, have in his possession or suffer to be used any washed, restored or counterfeit stamp, shall be guilty of a misdemeanor and on conviction thereof shall be liable to a fine of not less than five hundred dollars nor more than one thousand dollars, or be imprisoned for not more than one year, or subjected to both such fine and imprisonment at the discretion of the court. Any person who shall sell or use any alcoholic beverages upon which the tax shall not have been paid by the affixation of stamps, if prescribed pursuant to this section, shall also be guilty of a misdemeanor and shall be subject to like punishment therefor].

2. In the event that stamps are prescribed all of the provisions of this article shall apply, SO far as they may be or can be made applicable.

18. Sections four hundred seventy-seven and four hundred seventy

seven-a of such law are repealed.

$ 19. Subdivision two of section four hundred eighty-one of such law, as amended by chapter one thousand ten of the laws of nineteen hundred sixty-nine, is amended to read as follows:

2.

[Any person other than an agent, who possesses or transports for the purpose of sale any unstamped or unlawfully stamped packages of cigarettes subject to the tax imposed by section four hundred seventyone of this chapter, or who sells or offers for sale unstamped or unlawfully stamped packages of cigarettes in violation of the provisions of this article, or who wilfully attempts in any manner to evade or defeat the taxes imposed by this article, or the payment thereof, shall be guilty of a misdemeanor and upon conviction thereof, for a first offense, shall be sentenced to pay a fine of not more than two thousand dollars, or to be imprisoned for not more than one year or both, in the discretion of the court; and for a second offense, shall be sentenced to pay a fine of not less than five hundred dollars nor more than five thousand dollars, and to be imprisoned for a definite fixed period which shall be not less than six months and not more than one year. Any person who has previously been convicted two or more times under this section, or who, regardless of any previous convictions, possesses or transports for the purpose of sale twenty thousand or more cigarettes subject to the tax imposed by section four hundred seventy-one of this chapter in any unstamped or unlawfully stamped packages, or who, regardless of any previous convictions, sells or offers for sale twenty thousand or more cigarettes in any unstamped or unlawfully stamped packages in violation of the provisions of this article, or who, regardless of any previous convictions, wilfully attempts in any manner to evade or defeat the taxes imposed by this article or the payment thereof on twenty thousand or more cigarettes, shall be guilty of a class E felony. The possession or transportation within this state by any person other than an agent at any one time of five thousand or more cigarettes in unstamped or unlawfully stamped packages shall be presumptive evidence that such cigarettes are possessed or transported for the purpose of sale and are subject to the tax imposed by section four hundred seventyone of this chapter. Such possession or transportation shall render inoperative any provisions of this title providing for a time period during which a use tax may be paid on unstamped cigarettes or unlawfully or improperly stamped cigarettes or during which such cigarettes may be returned to an agent. ] (a) The possession within this state of more than four hundred cigarettes in unstamped or unlawfully stamped packages by any person other than an agent at any one time shall be presumptive evidence that such cigarettes are subject to tax as provided by this

article.

(b) Nothing in in this [subdivision] section shall apply to common or contract carriers or warehousemen while engaged in lawfully transporting or storing unstamped packages of cigarettes as merchandise, nor to any employee of such carrier or warehouseman acting within the scope of his employment, nor to public officers or employees in the performance of their official duties requiring possession or control of unstamped or unlawfully stamped packages of cigarettes, nor to temporary incidental possession by employees or agents of persons lawfully entitled to pos

session, nor to persons whose possession is for the purpose of aiding police officers in performing their duties.

§ 20. Subdivisions three and four of section four hundred eighty-one of such law are repealed and two new subdivisions three and four are added to read as follows:

3. For purposes of this chapter, the certificate of the tax commission to the effect that a tax imposed by this article has not been paid, that a return required by or under the provisions of this article has not been filed, or that information has not been supplied, as required by or under the provisions of this article, or that a bond required by or pursuant to the provisions of this article has not been filed, or that books, accounts, records, memoranda, documents or papers have not been supplied as required by or pursuant to the authority of this article shall be prima facie evidence that such tax has not been paid, such return not filed, such information not supplied, such bond not filed, that such books, accounts, records, memoranda, documents or papers have not been supplied.

or

4. Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 21. Subdivision three of section five hundred fourteen of such law, as added by chapter seventy-four of the laws of nineteen hundred fiftyone, is amended to read as follows:

3. (a) Any [offense against subdivisions one or two of this section shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the court and if the offender be an] officer or employee of the state[, he] who willfully violates the provisions of subdivision one or two of this section shall be dismissed from office and be barred from holding any public office in this state for a period of five years thereafter.

(b) Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 22. The section heading of section six hundred ninety-one of such law, as added by chapter one thousand eleven of the laws of nineteen hundred sixty-two, is amended to read as follows:

Mailing rules; holidays; miscellaneous.

§ 23. Section six hundred ninety-one of such law is amended by adding two new subsections (d) and (e) to read as follows:

(d) Certificate; unfiled return. -For purposes of this chapter, the certificate of the tax commission to the effect that a tax has not been paid, that a return has not been filed, or that information has not been supplied, as required by or under the provisions of this article, shall be prima facie evidence that such tax has not been paid, that such return has not been filed, or that such information has not been supplied.

(e) Attorney general; jurisdiction.-The attorney general shall have concurrent jurisdiction with any district attorney in the prosecution of any offenses arising under article thirty-seven of this chapter with respect to the tax imposed under this article.

§ 24. Section six hundred ninety-five of such law is repealed and a new section six hundred ninety-five is added to read as follows:

§ 695. Criminal penalties; cross-reference. -For criminal penalties, see article thirty-seven of this chapter.

$ 25. Subsection (e) of section six hundred ninety-seven of such law, as amended by chapter five hundred fifty-nine of the laws of nineteen hundred eighty-four, is amended to read as follows:

(e) Secrecy requirement and penalties for violation. -(1) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the tax commission, any tax commissioner, any officer or employee of the department of taxation and finance, any person engaged or retained by such department on an independent contract basis, any depositary to which any return may be delivered as provided in [subsections] subsection (h) or (i) of this section, any officer or employee of such depositary, or any person who, pursuant to this section, is permitted to inspect any report or return or to whom a copy, an abstract or a portion of any report or return is furnished, or to whom any information contained in any report or return is furnished, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required under this article or under section one hundred seventy-one-a of this chapter. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law