I was thinking of something completely different!
Posted on 09/07/2007 10:41:19 AM PDT by SmithL
The state Court of Appeals today declared Tennessee’s tax on illegal drugs unconstitutional.
A three-judge panel of the court unanimously said that tax, enacted by the state Legislature three years ago, is “is arbitrary, capricious, and unreasonable and, therefore, invalid under the Tennessee Constitution.”
The ruling came in a lawsuit filed on behalf of Steve Waters, arrested in 2005 on charges of selling about 1,000 grams of cocaine to an undercover officer for $12,000.
A few days later, the state Department of Revenue sent him a bill for $55,316.84 in taxes and penalties under the “unauthorized substances tax.”
The tax requires people possessing illegal drugs to buy tax stamps, offered with an assurance the tax will be kept confidential. If later found in possession of untaxed drugs, a person can be sued for back taxes as well as facing criminal charges.
Today’s decision upheld a ruling by Loudon County Chancellor Frank V. Williams. The Department of Revenue has a right to appeal the Court of Appeals ruling to the state Supreme Court.
(Excerpt) Read more at knoxnews.com ...
Did the plumbers union file an amicus brief?
"We will not prosecute you if you give us a cut."
The potential here for officially-sanctioned bribery of public officials by drugdealers is enormous.
This could be one of the dumbest laws I've heard of in a while.
Maybe retailers should consider this a precedent and stop collecting local “sin” taxes on tobacco and alcohol?
Agreed. I would like to see some enterprising reporter or documentarian buy a tax stamp before a hidden camera to see what happens.
When it was passed it was supposed to be based on existing laws in other states; I couln’t name them right now.
Couldn’t, sorry.
Actually, this was the methodology of 18th amendment prohibition. The federal enforcers were “revenooers” who were agents of the Treasury, not specifically law enforcement. This kind of tax on illegal substances is actually rather commonplace, and can be described as a “tax trap”, a way to create a penalty situation where other lawbreaking is hard to prove. Like they got Al Capone.
Illinois has had a marijuana tax on the books for the last 25 years or so. To my knowledge, no one has ever been prosecuted for not affixing one to their weed.
A friend of mine actually bought one. He's a stamp collector.
L
I thought the case against Capone was based on tax evasion of undeclared income, not failure to purchase tax stamps on contraband.
I was thinking of something completely different!
I couldn't decide if it was going to be a story about plumbers or tramp stamps! :)
We can pass laws for sanctuary cities for criminals, allow criminals to have free educations, free medical care, welfare, and give college educations to axe murders (in their air conditioned, cable tv, internet accessible cells), but when we try to penalize a criminal, we get "Un-Constitutional" thrown in our faces.
Go figger.....
I don’t really know that they were, but the revenooers were quite real. And now that I think about it, I believe you are right about Capone.
LOL as was I!
I’m pretty sure North Carolina was one state. That rings a bell with me.
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