Pubdate: Thu, 24 Jan 2008
Source: New York Post (NY)
Copyright: 2008 N.Y.P. Holdings, Inc.
Contact:  http://www.nypost.com/
Details: http://www.mapinc.org/media/296
Author: Kenneth Lovett, Post Correspondent

SPITZER 'CRACK TAX' PROTECTS DRUGGIES

ALBANY - Dealers and users who pay a proposed state levy on illicit 
drugs - dubbed the "crack tax" by critics - would not be turned over 
to police by tax officials under a plan being pushed by Gov. Spitzer.

Spitzer, in his 2008-09 budget proposal unveiled Tuesday, said he 
wants to create a tax stamp for illegal drugs, similar to such stamps 
used for cigarettes, which he says would raise $13 million in the 
coming fiscal year and $17 million annually after that.

According to a memo explaining the eyebrow-raising proposal, "The 
bill contains a unique and strict secrecy requirement, preserving the 
confidentiality of any information obtained from a dealer."

Disclosure of the information in some cases would be allowed for a 
criminal or civil proceeding involving taxes.

But "the bill specifically provides that none of the information may 
be used against the dealer in any criminal proceeding [other than a 
tax crime] unless it has been obtained independently," the memo said.

Dubbing it the "crack tax," state Sen. Martin Golden, a Brooklyn 
Republican and former city cop, called Spitzer's plan "another 
pie-in-the-sky idea that really has no legitimacy, and hopefully is 
not a first step toward legalizing drugs."

The plan, modeled after one in North Carolina, would require arrested 
drug dealers or users to purchase different tax stamps from the state.

"Upon receipt of the product, the dealer must affix enough stamps to 
the packages of marihuana [as it's spelled in official state 
legislative documents] or the controlled substance in order to show 
the tax has been fully paid," according to the proposal.

A tax stamp for marijuana would cost $3.50 per gram, while one for a 
controlled substance, "whether pure or dilute[d]," would be $200 per gram.

Experience in other states shows that stamp collectors, not drug 
dealers, are the ones purchasing the tax stamps.

The taxes and any applicable fines and penalties in those states are 
typically collected after a person is charged and their drugs seized by police.

Spitzer aides said they realize it's highly unlikely any drug dealers 
would come forward to purchase tax stamps.

That is why, they say, the governor's proposal requires "prompt 
notification" of the tax commissioner by law-enforcement agencies and 
DAs "who obtain any information that indicates that a dealer has 
failed to pay the tax due." 
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MAP posted-by: Richard Lake