HB18 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

First Special Session 2015

Title

Sales tax transactions, possession or use of automated sales suppression devices or phantom-ware to delete sales from cash register records, prohibited, criminal penalties, Sec. 40-29-121 added; Sec. 40-29-119 am'd.

Summary

HB18 would criminalize possession or use of automated sales suppression devices and phantom-ware in Alabama, establishing a felony with heavy penalties and required forfeiture.

What This Bill Does

It creates a new crime (40-29-121) and defines key terms for automated sales suppression devices, phantom-ware, electronic cash registers, transaction data, and transaction reports. It makes knowingly selling, purchasing, installing, transferring, or possessing these devices or phantom-ware unlawful in Alabama. Violations are felonies with fines up to $100,000 for individuals or $500,000 for corporations, up to three years in prison, or both, and the offender must pay back all taxes, fees, penalties, and interest due; profits from the devices can be forfeited to the state. The devices and software become contraband and must be forfeited. It also changes the statute of limitations to include the new offense and notes that local funding requirements under Amendment 621 do not apply due to specific exceptions, with the act becoming effective immediately upon governor’s approval.

Who It Affects

• Individuals who possess or use automated sales suppression devices or phantom-ware would face felony charges, fines up to $100,000, potential imprisonment up to three years, and required restitution for taxes due.
• Corporations that purchase, install, transfer, or possess such devices would face fines up to $500,000, potential imprisonment up to three years, restitution for taxes due, and forfeiture of profits.

Key Provisions

• Adds new offense and definitions in 40-29-121 for automated sales suppression devices and phantom-ware, including what counts as electronic cash registers, transaction data, and transaction reports.
• Prohibits knowingly selling, purchasing, installing, transferring, using, or possessing these devices or phantom-ware in Alabama.
• Imposes felony penalties: up to $100,000 fine for individuals, up to $500,000 for corporations, up to three years in prison, or both; requires restitution of all taxes, fees, penalties, and interest; forfeits profits from the devices.
• Declares the devices and software contraband and subject to forfeiture to the state.
• Amends the statute of limitations to include the new offense under 40-29-119 and clarifies limits for related revenue offenses.
• Notes that the local-funding requirement under Amendment 621 does not apply to this bill due to exceptions, and the act becomes law immediately upon governor's approval.

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

Subjects

Taxation