HB283 Alabama 2014 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

Regular Session 2014

Title

Crimes and offenses, sales tax, possession or use of automated sales suppression device, or phantom-ware, prohibited, penalties, statute of limitation, Sec. 40-29-121 added; Sec. 40-29-119 am'd.

Summary

The bill makes it illegal to possess or use automated sales suppression devices or phantom-ware to hide sales tax, and creates criminal penalties, forfeitures, and longer time limits for enforcement.

What This Bill Does

It adds a new crime (Section 40-29-121) defining automated sales suppression devices and phantom-ware, and prohibits knowingly selling, purchasing, installing, transferring, or possessing them. It imposes felony penalties, including fines up to $100,000 for individuals or $500,000 for corporations, imprisonment up to three years, liability for lost revenue, and forfeiture of the devices and profits. It also extends the statute of limitations for this offense to six years and clarifies that the act is exempt from certain local expenditure restrictions. The changes take effect immediately once signed into law.

Who It Affects

• Individuals and corporations that possess, sell, purchase, install, or transfer automated sales suppression devices or phantom-ware in Alabama; they would face felony charges, fines, imprisonment, liability for lost revenue, and forfeiture.
• Alabama state and local revenue authorities and the court system, which would gain a new crime to prosecute, a longer window to prosecute, and new procedures for forfeiture and recovery of taxes and profits related to these devices.

Key Provisions

• Defines Automated Sales Suppression Device, Electronic Cash Register, Phantom-Ware, Transaction Data, and Transaction Reports.
• Makes knowingly selling, purchasing, installing, transferring, or possessing an automated sales suppression device or phantom-ware unlawful in Alabama.
• Declares such devices and software contraband; imposes felony penalties: up to $100,000 fine for individuals, up to $500,000 for corporations, up to three years imprisonment, or both, plus liability for all lost revenue and forfeiture of profits.
• Extends the statute of limitations to six years for offenses involving possession or use of these devices (Section 40-29-121).
• Allows forfeiture of the devices and any related profits; requires that contraband be forfeited to the state.
• Amends Section 40-29-119 to reflect the new offense and the extended limitation period; the bill is exempt from the local expenditure requirements of Amendment 621 per its own language.
• Effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Crimes and Offenses