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New Mexico Zapper & Sales Suppression Law

New Mexico prohibits automated sales suppression devices.

Citation
N.M. Stat. Ann. § 7-1-73
Type
Sales-suppression language added to its general tax-fraud statute rather than a standalone law
Penalty
Tax fraud; petty misdemeanor to 2d-degree felony by tax owed
Enacted
2023

Automated sales suppression software — commonly called a “zapper” or “phantomware” — alters the electronic records of a point-of-sale or electronic cash register system so that sales, and the tax collected on them, go unreported. New Mexico addresses this conduct through sales-suppression language added to its general tax-fraud statute rather than a standalone law.

Sales-suppression language grafted onto general tax-fraud statute in 2023, not a standalone zapper law.

If you have received an audit notice, a reassessment, or an inquiry concerning suppression software in New Mexico, the statute above is the provision most likely at issue. Confirm its current text before relying on it.

Facing a sales suppression allegation or a sales tax reassessment? We defend these matters. Email [email protected].

Reviewed July 2026 against primary sources. This page is a research aid, not legal advice.