Thursday, January 26, 2006

Tennessee sees the light

So last January a "Crack Tax" went into effect in Tennessee which requires drug dealers to pay tax on illegal drugs and alchohol. In a process similar to that of cigarettes, the state issues stamps which are put on the drugs. A drug dealer busted for selling drugs which are not carrying the tax stamps gets proscecuted for both offences.

Tennessee has a pretty good F.A.Q. about the tax laws, where you can find interesting nuggets such as

1. What is the unauthorized substances tax?

The unauthorized substances tax is a state excise tax levied on controlled substances (marijuana, cocaine, crack, methamphetamine, etc.) and certain illicit alcoholic beverages (untaxed liquors and spirits).

2. Who is required to pay the tax?

The tax is due by any dealer who possesses an unauthorized substance upon which the tax has not been paid as evidenced by a stamp available from the Tennessee Department of Revenue. A "dealer" is any person who possesses more than 42.5 grams of marijuana, seven or more grams of any other unauthorized substance that is sold by weight, or 10 or more dosage units of any other unauthorized substance that is not sold by weight.


And guess what - this new tax brought in 2 million dollars of revenue to the state last year.



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