An Act To Prohibit Computer Software Programs Used To Evade Sales Tax
Maine Legislature, Session 125, LD 1764
Committee Amendment CA_A_H743 (House)
Amends: 17-A MRSA §909

COMMITTEE AMENDMENT "A" to H.P. 1297, L.D. 1764, Bill, "An Act To 
Prohibit Computer Software Programs Used To Evade Sales Tax" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Reduce High-technology Tax Evasion and Theft' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 17-A MRSA §909 is enacted to read: 
§909. Possession or transfer of automated sales suppression device 
1. 
A person is guilty of possession or transfer of an automated sales suppression 
device if: 
A. 
The person knowingly possesses, purchases or owns any automated sales 
suppression device or phantom-ware. Violation of this paragraph is a Class D crime; 
or 
B. The person knowingly manufactures, sells, installs or transfers any automated 
sales suppression device or phantom-ware or possesses, purchases or owns with the 
intent to sell, install or transfer any automated sales suppression device or 
phantom-ware. Violation of this paragraph is a Class C crime. 
2. As used in this section, unless the context otherwise indicates, the following terms 
have the following meanings. 
A. 
"Automated sales suppression device" means a computer software program, 
which may be stored on magnetic or optical media, accessed through the Internet or 
accessed through any other means, that is designed or used to falsify the electronic 
records of an electronic cash register or other point-of-sale system, including, but not 
limited to, transaction data and transaction reports. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1297, L.D. 1764 
B. "Electronic cash register" means a device that keeps a register or supporting 
documents through the means of an electronic device or computer system designed to 
record transaction data for the purpose of computing, compiling or processing retail 
sales transaction data. 
C. "Phantom-ware" means a hidden, preinstalled or installed 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 2nd cash register or to 
eliminate or manipulate transaction records, which mayor may not be preserved in 
digital formats, can represent either the true or the manipulated records of 
transactions in the electronic cash register and is intended to falsify the electronic 
records of an electronic cash register or other point-of-sale system. 
D. "Transaction data" includes a description of items purchased by a customer; the 
price for each item; a taxability determination for each item; a segregated tax amount 
for each taxed item; the amount of cash or credit tendered; the net amount returned to 
the customer in change; the date and time of the purchase; the name, address and 
identification number of the vendor; and the receipt or invoice number of the 
transaction. 
E. "Transaction report" means a report that includes, but is not limited to, sales, taxes 
collected, methods of payment and voided sales at an electronic cash register that is 
printed on cash register tape at the end of a day or shift or a report that includes every 
action at an electronic cash register that is stored electronically.' 
SUMMARY 
This amendment changes the title of the bill, removes the emergency preamble and 
emergency clause from the bill and, like the bill, prohibits the possession of automated 
sales suppression devices, which alter the amounts of sales made by a business for the 
purpose of illegally withholding sales taxes paid by customers. It provides that a person 
who knowingly possesses, purchases or owns any automated sales suppression device or 
phantom-ware commits a Class D crime. 
It provides that a person who knowingly 
manufactures, sells, installs or transfers any automated sales suppression device or 
phantom-ware or possesses, purchases or owns with the intent to sell, install or transfer 
any automated sales suppression device or phantom-ware commits a Class C crime. The 
amendment removes the sections of the bill related to an interim compliance period and 
reporting by the Department of Administrative and Financial Services, Bureau of 
Revenue Services to the joint standing committee of the Legislature having jurisdiction 
over taxation matters on efforts to detect and prevent crimes involving automated sales 
suppression devices. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/051\2 Mac 
LD 1764 
LR 2364(02) 
An Act To Prohibit Computer Software Programs Used To Evade Sales Tax 
Fiscal Note for Bill as Amended by Committee Amendment ,A" Cl-f-74-3) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Establishes new Class C and D crimes; insignificant increase to correctional and judicial costs anticipated. 
Fiscal Detail and Notes 
To date, there is no evidence that the use of automated sales suppression devices has had a significant impact on 
current state tax revenues. The current baseline revenue forecast does not assume any significant change in future non-
compliance. The provisions of this bill would create increased confidence in the baseline revenue forecast by 
reducing a potential source of non-compliance, but would not change the forecast levels of revenue. 
LR2364(02) - Fiscal Note - Page I of I