SB505 Alabama 2015 Session

Summary

Primary Sponsor

Tim MelsonSenator

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

SB505 would criminalize possession or use of automated sales suppression devices and phantom-ware to hide or manipulate sales records for tax purposes, with heavy penalties and related changes.

What This Bill Does

It creates a new crime making it illegal to knowingly sell, purchase, install, transfer, or possess automated sales suppression devices or phantom-ware. Violators face felony penalties: up to $100,000 fine for individuals (up to $500,000 for corporations), up to three years in prison, and liability for all taxes, penalties, and interest, with profits from the device forfeited. It adds this offense to the revenue-law statute of limitations (three years generally, six years for certain offenses) and declares such devices contraband. It clarifies local-funding requirements under Amendment 621, noting the bill is exempt as it creates a new crime and becomes effective upon governor's approval.

Who It Affects

• Individuals and corporations that possess, sell, purchase, install, transfer, or use automated sales suppression devices or phantom-ware in Alabama, who could face felony charges, fines, imprisonment, and liability for lost revenue plus forfeiture of profits.
• Retail businesses and their employees that operate electronic cash registers, along with state and local tax authorities responsible for collecting and enforcing sales taxes, who would be impacted by the new prohibition, enforcement, and potential revenue protections.

Key Provisions

• Defines automated sales suppression device, phantom-ware, transaction data, and transaction reports.
• Prohibits knowingly selling, purchasing, installing, transferring, or possessing an automated sales suppression device or phantom-ware in Alabama; such devices/software become contraband and are forfeitable.
• Imposes felony penalties: up to $100,000 fine for individuals, up to $500,000 for corporations, up to three years’ imprisonment, and liability for all taxes, penalties, and interest; profits related to the devices may be forfeited.
• Adds the offense to 40-29-121 and amends 40-29-119 to reflect the new statute of limitations (generally three years; six years for certain offenses).
• Addresses local expenditure concerns under Amendment 621 by classifying the bill as a new crime, allowing it to become law without requiring a 2/3 vote by local entities; effective 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