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. - -------------------- '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. - --- MAP posted-by: Steve Heath