SB505 Summary

• Establishes a new felony offense under Alabama Code Section 40-29-121 to make it unlawful to knowingly sell, purchase, install, transfer, use, or possess automated sales suppression devices or phantom-ware that falsify electronic cash register records to under-report sales taxes.

• Defines automated sales suppression devices and phantom-ware as software or programming that deletes or manipulates transaction records in electronic cash registers to conceal sales and reduce tax reporting to state, county, and municipal authorities.

• Imposes criminal penalties of fines up to $100,000 for individuals or $500,000 for corporations, imprisonment for up to three years, or both, plus liability for all lost taxes, fees, penalties, and interest and forfeiture of profits associated with the devices.

• Declares automated sales suppression devices and phantom-ware to be contraband subject to state forfeiture.

• Amends Section 40-29-119 to extend the limitation period for prosecution of this offense to six years, and establishes the act becomes effective immediately upon passage and Governor approval.