Oklahoma – Sales Suppression Devices

SALT Report 1575 – The Oklahoma State Legislature recently passed a bill making it unlawful to “willfully and knowingly sell, purchase, install, transfer, or possess any automated sales suppression device, zapper, or phantom-ware.”

HB 2576 defines phantom-ware as any hidden, preinstalled, or installed, programming option embedded in the operating system of an electronic cash register or hardwired into an electronic cash register.  These programs create a virtual second till or to manipulate and eliminate transaction records so they are not preserved in a digital format.  They are used to misrepresent the transactions in an electronic cash register.

Anyone convicted of violating the law will be subject to imprisonment for up to five years, fined up to $100,000, or both, plus an additional administrative fine of $10,000 will be imposed by the Oklahoma Tax Commission.

Upon conviction, the Commission will revoke the sales tax permit of any person who violates the law and any person whose license is revoked for this reason will not be eligible for another sales tax permit for 10 years.

For Further Information:

Oklahoma State Tax Commission – HB 2576