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A03507 Summary:

A03507 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3507
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 23, 2015
                                       ___________
 
        Introduced  by M. of A. GLICK -- read once and referred to the Committee
          on Ways and Means
 
        AN ACT to amend the tax law, in relation to prohibiting the use of auto-
          mated sales suppression devices, zappers or phantom-ware
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The tax law is amended by adding a new section 1816 to read
     2  as follows:
     3    §  1816. Automated sales suppression. (a) Definitions. As used in this
     4  section:
     5    (1) "Automated sales suppression device" or "zapper" means a  software
     6  program,  carried  on a memory stick or removable compact disc, accessed
     7  through an Internet link, or accessed  through  any  other  means,  that
     8  falsifies  the electronic records of electronic cash registers and other
     9  point-of-sale systems, including, but not limited to,  transaction  data
    10  and transaction reports.
    11    (2) "Electronic cash register" means a device that keeps a register or
    12  supporting  documents  through  the  means  of  an  electronic device or
    13  computer system designed to record transaction data for the  purpose  of
    14  computing, compiling, or processing transaction data.
    15    (3)  "Phantom-ware"  means  a  hidden, preinstalled, or installed at a
    16  later time programming option embedded in the  operating  system  of  an
    17  electronic  cash register or hardwired into the electronic cash register
    18  that with intent or by specific design  is  used  to  create  a  virtual
    19  second  till or may eliminate or manipulate transaction records that may
    20  or may not be preserved in digital formats  to  represent  the  true  or
    21  manipulated record of transactions in the electronic cash register.
    22    (4) "Transaction data" means data associated with items purchased by a
    23  customer,  the  price for each item, a taxability determination for each
    24  item, a segregated tax amount for each of the taxed items, the amount of
    25  cash or credit tendered, the net amount  returned  to  the  customer  in
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03910-01-5
        A. 3507                             2
 
     1  change,  the date and time of the purchase, the name, address, and iden-
     2  tification number of the vendor, and the receipt,  sequence  or  invoice
     3  number of the transaction.
     4    (5)  "Transaction  report" means a report documenting data, including,
     5  but not limited to, data associated with sales, taxes  collected,  media
     6  totals, and discount voids at an electronic cash register that is print-
     7  ed on cash register tape at the end of a day or shift, or a report docu-
     8  menting every action at an electronic cash register that is stored elec-
     9  tronically.
    10    (6)  "Person"  shall have the same definition as in subdivision (a) of
    11  section eleven hundred one of this chapter.
    12    (b) Prohibitions. (1) It is an  offense  for  a  person  to  knowingly
    13  purchase,  possess,  install, update, maintain, upgrade, transfer or use
    14  any automated sales suppression device, zapper or phantom-ware.   It  is
    15  also  an  offense  to  transmit transaction data with the intent of data
    16  manipulation for the purpose of evading any taxes under this article.
    17    (2) A violation of paragraph one of this  subdivision  is  a  class  E
    18  felony  punishable  by a fine of not less than five thousand dollars but
    19  not more than twenty-five thousand dollars and,  for  a  second  offense
    20  within  five  years,  by  a  fine  of not less than twenty-five thousand
    21  dollars but not more than one hundred thousand dollars and, for a  third
    22  or  subsequent  offense within ten years, by a fine of not less than one
    23  hundred thousand  dollars  but  not  more  than  five  hundred  thousand
    24  dollars.
    25    (3)  It  is  an  offense  for a person to knowingly sell any automated
    26  sales suppression device, zapper or phantom-ware.
    27    (4) A violation of paragraph three of this subdivision is  a  class  E
    28  felony  punishable  by  a fine of twenty-five thousand dollars per inci-
    29  dent.
    30    (5) The offenses created by this section shall be in addition  to  and
    31  considered  a  separate  offense  from  any  offense of section eighteen
    32  hundred seventeen of this part.
    33    § 2. This act shall take effect January 1, 2017.