Section 51 Sales Tax Integrity
Said chapter 62C is hereby further amended by inserting after section 35E the following section:-
Section 35F. (a) The following words as used in this section shall, unless the context otherwise requires, have the following meaning:
(1) "Automated sales suppression device" or "zapper", a software program, carried on a memory stick or removable compact disc, accessed through an Internet link, or accessed through any other means, that falsifies the electronic records of electronic cash registers and other point-of-sale systems, including, but not limited to, transaction data and transaction reports.
(2) "Phantom-ware", a hidden, preinstalled, or installed at a later time programming option embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that can be used to create a virtual second till or may eliminate or manipulate transaction records that may or may not be preserved in digital formats to represent the true or manipulated record of transactions in the electronic cash register.
(b) Any person who sells, offers for sale, purchases, installs, transfers, maintains or repairs, or possesses in the commonwealth any automated sales suppression device or zapper or phantom-ware, shall, in addition to any other penalty provided by this chapter, be subject to a civil penalty of not more than $10,000 for the first offense, or $25,000 in the case of a seller, and not more than $25,000 for each subsequent offense, or $50,000 in the case of a seller. Such penalty shall be paid upon notice by the commissioner and shall be assessed and collected in the same manner as a tax.
This section imposes civil penalties on those who sell or install "zapper" software, which is software that falsifies the electronic records of electronic cash registers and other point-of-sale systems.