Calif. Says 'Zapper' Software Cost It $210M In Tax Revenue

Law360, New York (January 9, 2014, 3:39 PM EST) -- In a demonstration showing the magnitude of cigarette excise tax evasion in California, the state's Board of Equalization on Wednesday showed how so-called zapper software bilks the state out of $210 million in tobacco excise taxes annually.

Use of zapper software was outlawed in California as of Jan. 1, but many retailers still use the software to digitally remove cash transactions from their receipts, thus avoiding tobacco excise tax payments and other point-of-sale fees on cigarettes.

“Through the use of 'zappers,' businesses are able to engage...
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