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Minutes for HB2527 - Committee on Taxation
Short Title
Creating the crime of unlawful acts involving automated sales suppression devices.
Minutes Content for Tue, Feb 6, 2018
Scott Wells, Senior Assistant Revisor provided an overview on HB2527 stating the bill covers unlawful acts of knowingly, selling, purchasing, installing, transferring, manufacturing, creating, designing, updating, repairing, using or possessing an automated sales suppression device, zapper or phantomware. The unlawful act is a level 6, nonperson felony and liable for all taxes, interest and penalties due the State. Mr. Wells stood for questions from the Committee.
Michael Hale, Department of Revenue testified as a proponent of HB2527 (Attachment 1) stating the bill would make it unlawful to knowingly sell, purchase, install, transfer or possess in Kansas any automated sales suppression device or "zapper" that falsifies the electronic records of electronic cash registers and other point-of-sale systems. This bill prohibits the under reporting of sales taxes by use of electronic devices or software that falsify sales reported to Kansas. He noted one of the missions of the Department of Revenue is to insure compliance with the Retailers' Sales and Compensating Tax Acts and the collection of sales and tax revenues to fund state programs and agencies. Mr. Hales stood for Committee questions.
In response to a question regarding how much money the state may be losing, Mr. Hale stated the Department of Revenue does not have a dollar amount yet due to number of people required to do an audit.
Scott M. Schultz, Executive Director, Kansas Sentencing Commission spoke about level 6, nonperson felony. No testimony submitted.
After asking if there were any other conferees and seeing none, Chairperson Johnson closed the hearing on HB2527.
