SB 1386 Summary

• Establishes the Department of Revenue Tax Fraud Interdiction Fund to receive fines from convictions related to automated sales suppression devices and zappers used to evade taxes.

• Requires 50% of fund monies to be used by the Department of Revenue to detect violations and enhance tax fraud analytics, and 50% to be transferred to the Attorney General for prosecutions.

• Creates criminal penalties for purchasing, installing, or using automated sales suppression devices (zappers or phantom-ware) to defeat taxes, with fines up to $100,000 for individuals or $500,000 for corporations.

• Creates criminal penalties for selling, licensing, manufacturing, or possessing automated sales suppression devices knowing they will be used to evade taxes, with identical fine amounts deposited into the interdiction fund.

• Requires violators to forfeit all profits associated with the devices and remain liable for all unpaid taxes, fees, penalties, and interest.