The New York Department Of Taxation has a rule that threatens to fine you if you file a paper return when having the ability to send one electronically. Though to my knowledge they do not actually enforce that rule - just leave lots of warnings around.

Reminds me of those stupid "Must Observe All Warning Signs - State Law" signs that used to be all over Texas highways. I didn't see any my last trip so maybe those are gone finally, but I just passed through the panhandle briefly. They used to be the first thing you would see after crossing the state line, then periodically along all the interstate highways.