|SAME AS||SAME AS S05308|
|Add S1816, Tax L|
|Prohibits the use of automated sales suppression devices, zappers or phantom-ware.|
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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. LBD03910-01-5A. 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.