Tennessee – Penalty for Using Sales Suppression Devices

SALT Report 1482 – The Tennessee State Legislature recently passed a bill, HB 226, that makes it a criminal offense for an individual or corporation to sell, purchase, possess, install, transfer, or use any sales suppression device, zapper, or phantom-ware.
Phantom-ware is a hidden software program embedded or hardwired into the operating system of a cash register that is used to create a “virtual second till” or to eliminate certain transaction records.
Any device of this type is considered contraband and subject to seizure, confiscation, and forfeiture. Anyone caught selling, purchasing, possessing, installing, transferring or using any such device will be subject to criminal prosecution and fines of up to $100,000. The penalties associated with this bill are in addition to, and considered a separate offense from, any penalties or offenses related to the non-payment of taxes owed to the state.
Additionally, any person who reports a violation is entitled to receive 50% of any fine collected, up to $10,000.
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