Bill would make it a felony to have a sales suppression device to cheat the state out of taxes
By Howard Fischer | Capitol Media Services via Arizona Daily Sun
Targeting retail cheaters, a proposed state law would make it a crime to possess software or equipment that, in essence, can lie about sales.
The legislation, SB 1386, would make it a felony to purchase, install or use any “automated sales suppression device or service” with the intent of cheating the state out of taxes. The offense would carry a presumptive sentence of 18 months in state prison for a first offense.
Those found guilty also could face having to repay what they owe, with interest and penalties, as well as fines of up to $100,000, or $500,000 for corporate offenders.
But that pales in comparison to the $350 million that the National Conference of State Legislatures estimates Arizona loses every year to this kind of cheating. That’s close to one dollar out of every eight the state collects now.
