Pubdate: Sat, 26 Apr 2003 Source: St. Louis Post-Dispatch (MO) Copyright: 2003 St. Louis Post-Dispatch Contact: http://www.stltoday.com/ Details: http://www.mapinc.org/media/418 Author: Bill Bell Jr. TAXES ON MARIJUANA, PORNOGRAPHY ARE PROPOSED Missouri lawmakers would tax marijuana and other controlled substances by letting the state seize assets when a drug dealer is caught. JEFFERSON CITY - If you thought the government had taxed just about everything, the Missouri Senate has come up with two more ideas: pot and porn. Faced with big budget cuts, lawmakers are scrambling for different ways to soften the financial blow to state agencies. Two unique ideas surfaced Friday as senators started - but didn't finish - a lengthy debate over how to raise more money. One idea would be to put a 5 percent gross receipts tax on the sale of "all adult entertainment products and services." This part of the bill would cover businesses that offer live performances of "actual or simulated sexual activities." This idea would raise an estimated $5 million a year. "Unfortunately, it's a burgeoning industry in this state," said the sponsor, Sen. Charlie Shields, R-St. Joseph. Another part of Shields' bill would place a tax on marijuana, domestic marijuana plants and controlled substances. Shields said he did not expect drug dealers to notify the state of their business activities. But under such a law, if a drug dealer was caught, the state could seize assets because the dealer did not pay the proper state taxes. Shields said Iowa and North Carolina already have such a law. Such a tax could raise about $6 million a year in Missouri, with half going to schools and half to law enforcement. These two approaches were part of a much broader bill designed to raise more than $180 million in state revenues without a general tax increase. More than $120 million of this total would be from one-time sources of money, meaning that lawmakers could not rely on them to plug future budget gaps. The Legislature is also considering ideas such as raising state taxes on cigarettes, passing a temporary sales tax and doing away with the $500 loss limit at casinos. Most of the discussion Friday centered on whether the state should sweep interest out of scores of special state government accounts, such as the "endowed care cemetery audit fund" and the "gaming proceeds for education fund." Critics said the bill had so many controversial provisions, it would be overturned in court. Sen. Ken Jacob, D-Columbia, said the plan would "put the governor in the position that he has a budget built on a house of cards, and he has to cut." Lawmakers are supposed to complete work on the budget by May 9. The session adjourns May 16. The approaching deadline worries Senate Appropriations Chairman John T. Russell, R-Lebanon. "Here we are with two weeks left, and we don't have any new revenue," he said. The bill is HB600. - --- MAP posted-by: Alex