Pubdate: Wed, 03 Jan 2007
Source: Commercial Appeal (Memphis, TN)
Copyright: 2007 The Commercial Appeal
Contact:  http://www.commercialappeal.com/
Details: http://www.mapinc.org/media/95
Author: Richard Locker

DRUG DEALERS PAY $1.8M IN TAXES TO TENN.

But Most Don't Volunteer To Pony Up; Collections Usually Come After
Arrests

NASHVILLE -- Tennessee's tax on illegal  drugs was a head-scratcher
when the state legislature  enacted it in 2004 -- What drug dealer
would pay it? --  but it netted nearly $1.8 million in 2006, state tax
  collectors announced Tuesday.

The Department of Revenue said it collected $1.774  million in
"unauthorized substances tax" last year, up  from the $1.715 million
the tax generated in 2005, the  first year it was collected.

The tax applies to "controlled substances and illicit  alcoholic
beverage, including cocaine, crack,  methamphetamine, marijuana and
moonshine."

The state sells unauthorized substances tax stamps in a  confidential
process that is not disclosed to law  enforcement agencies, except for
prosecution for  violating the unauthorized substances tax law. Buying
  the tax stamps does not provide immunity from criminal
prosecution.

A dealer is defined in the tax law as anyone who  possesses more than
42.5 grams of marijuana, seven or  more grams of any other
unauthorized substance that is  sold by weight, 10 or more dosage
units of an illegal  substance not sold by weight, or any illicit
alcoholic  beverage.

But illicit drug dealers aren't exactly lining up to  pay the tax.
Department spokeswoman Emily Richard said  most of the tax is
collected after an arrest and when  items like cars and boats seized
from drug dealers are  auctioned off. Revenue agents are called after
an  arrest and assess the tax rates specified in the 2004  law to the
drugs seized.

Assessments last year totaled $43.2 million, out of  which the nearly
$1.8 million was collected.

Richard said a small percentage of the tax collections  come from
stamp collectors who buy the tax stamps for  their
collections.

Contact Nashville Bureau chief Richard Locker at (615)
255-4923.

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'Crack' tax

Tennessee's Unauthorized Substance Tax Is levied at the  following
rates:

$3.50 per gram of marijuana.

$50 per gram of cocaine.

$200 per gram of other controlled substance sold by
weight.

$50 for each 10 dosage units of any "low-street value  drug" that is
not sold by weight

$200 for each 10 dosage units of any other controlled  substance not
sold by weight. 
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MAP posted-by: Steve Heath