'Crack tax' Struck Down by State Appeals Court (Tennessee)

[NashVegas]

Source: Tennessean

Tennessee’s tax on illicit drugs, known as the “crack tax,” is unconstitutional, the Tennessee Court of Appeals ruled today.

The unanimous opinion, written by Judge Sharon G. Lee, upholds a Loudon County Chancery Court decision that found that the tax on illicit drugs violates the drug possessor’s constitutional guarantee of due process and protections against self-incrimination.

Under a Tennessee law that took effect in January 2005, the state levies a tax on illegal substances, including marijuana, moonshine and cocaine. Drug dealers are required to anonymously pay the tax at a state revenue office and get a stamp to prove payment. If a dealer is arrested and doesn’t have a stamp, the state then goes after the money it is owed.

The law has been highly controversial, with some criminal defense attorneys claiming that the state is taxing people who aren’t even convicted of crimes and that the law violates a defendant’s right to self-incrimination.

Read more: http://tennessean.com/apps/pbcs.dll/article?AID=/20070907/NEWS03/70907021

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At least it only took two years.

[Warpy]

1. The whole unconstitutional drug war is based on tax law

and this ruling is what should be done at the national level to end it.

[Deep13]

2. "...defendant's right to self-incrimination."

I don't think anyone has violated the defendant's right TO self incrimination. No one will mind if he voluntarily confesses. It's the right AGAINST self incrimination that is protected by the Constitution.

[NashVegas]

3. That's the Tennessean for You

NYT, it ain't.

[valerief]

4. I guess people guilty of pre-meditated murders in Tennessee also

have to pay a murder-tax.

Paying a tax on something illegal is the silliest thing I have ever heard. It's definitely a way to condone the crime.

Now, whether the illegal substance should be illegal is a whole other ball of wax.

[JMDEM]

5. Crack tax???

Maybe they should keep it around to make sure all those good ol' boys keep their pants pulled up high enough.

[rocktivity]

6. "Drug dealers are required to anonymously pay the tax

at a state revenue office and get a stamp to prove payment..."

But if they have to get a stamp, they are no longer anonymous. Is the tax supposed to be on the substances themselves, their income from being sold, or profits after overhead costs? And how are the dealers kept honest about paying their fair share--are they audited?

Al Capone was caught by the passage of a law which required the reporting of even illegal income to the IRS. Why don't they just dust that one off? And how the Cheney did this law get on the books?

:shrug:
rocknation

[NashVegas]

7. Here's How It Worked

If you got busted with, say, a pound of dope, along with the usual charges, it would be assumed you were dealing and therefore, you'd need to pony up sales tax. No tax stamp = tax evasion.

Cute, huh?

[rocktivity]

8. A pound of dope? That's possession with INTENT to sell

If there's also a pound of MONEY on the premises, you could be taxed on THAT. But they can't tax you on what you HAVEN'T sold, and certainly shouldn't be able to tax you on merchandise they can't prove existed!

:crazy:
rocknation

[guitar man]

9. oh, this isn't what I thought it was

when I read the thread title, I thought it was some kind of special self-employment tax for plumbers and appliance repairmen :D