HB140 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Steve McMillan
Republican
Session: Regular 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: HB140 makes it illegal to possess or use automated sales suppression devices or phantom-ware in Alabama, creating a felony with penalties and defining related terms and seizure rules.
What This Bill Does
It creates a new crime prohibiting knowingly selling, purchasing, installing, transferring, or possessing automated sales suppression devices or phantom-ware. It treats violators as Class C felons with fines up to $100,000 for individuals (or $500,000 for corporations), up to 3 years in prison, and liability for all taxes, penalties, and interest due, plus forfeiture of related profits. The devices are declared contraband and forfeitable, and the statute of limitations for revenue offenses is extended to six years for offenses including possession of such devices. The act also notes local expenditure implications under Amendment 621 but provides exceptions to avoid local-voter approval.

Who It Affects
Individuals who possess or use automated sales suppression devices or phantom-ware in Alabama would face felony penalties and must repay any taxes and profits gained from fraud.
Corporations that sell, purchase, install, transfer, or possess these devices would face heavy fines, potential imprisonment, and mandatory forfeiture of profits, along with tax liabilities.

Key Provisions
Section 40-29-121 adds definitions for automated sales suppression device, phantom-ware, transaction data, and transaction reports, and prohibits knowingly selling, purchasing, installing, transferring, or possessing such devices in Alabama.
Violators face Class C felony penalties: fines up to $100,000 for individuals or up to $500,000 for corporations, imprisonment up to 3 years, or both, plus liability for all taxes, penalties, and interest and forfeiture of profits.
Devices and phantom-ware are declared contraband and subject to forfeiture to the state.
Section 40-29-119 is amended to set a general three-year statute of limitations for revenue offenses and six years for offenses including possession of an automated sales suppression device or phantom-ware.
The act notes local expenditure implications under Amendment 621 but is treated as an exception to local approval requirements; Section 6 states the act becomes effective immediately after 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