Buzzby

Even Illegal Drugs Are Now Taxed
Ken Studer | Herald Democrat | 12/21/2005

Taxes has never been on top of the list for favorable conversation for most. Our food is taxed, or income is taxed, but now they've started taxing people's illegal drugs.

Arizona started the ball rolling by coming up with the marijuana and drug tax. Since that time, more than 20 other states have passed various marijuana and drug taxes. There are tax stamps for marijuana, controlled substances, LSD, psychedelic mushrooms, and others.

In those states, people who possess cannabis or other illegal drugs are legally required to purchase and affix state-issued stamps onto their contraband. The total cost of the tax is determined by the quantity of contraband one has. Unlike typical criminal laws prohibiting the possession and sale of controlled substances, drug tax stamp laws primarily assess financial penalties on the defendant for not having the stamp. On occasion, criminal sanctions may also be imposed.

The stamps range in price from 35 cents to $4,000. The State Revenue Department said some of the expensive stamps have never been purchased. For the first 10 years, of the Arizona stamps, 83 sheets of the one gram cannabis stamp were sold, and three sheets of the cannabis one ounce stamp were sold. No one has ever purchased any of the cannabis one kilo, ( $352.74 ) or any of the three controlled substances ( one gram, $8.80; one ounce, $250; and one kilo, $4,000 ). Keep in mind, you have to buy a whole sheet at a time.

Nearly half of the U.S. states have the marijuana tax stamp laws on their books, few citizens observe them. Most of the citizens of these states don't even know that such a law exist in their state. Others fear that complying with the law will get them busted. The legislative intent of drug tax laws is to impose an additional penalty, tax evasion, upon drug offenders after they are arrested and criminally charged with a drug violation.

In some states such as Georgia, failure to comply with the state tax law may result in a nominal misdemeanor penalty. However, in other states, such as Minnesota, failure to comply with the state's drug tax law may result in a defendant facing an additional fine of up to $14,000 and seven years in jail.

In one recent case in Arizona a man was arrested for selling marijuana, and he had a license and had the tax stamps on his product. A judge decided that if the state sold him a license, they shouldn't arrest him for selling the product so licensed. The judge dismissed the charges against the fellow. The state appealed and the case is still going on.

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oneluv4boognish

Okay please explain this one to me.....marijuana is illegal right? Isn't it saying it's legal if you're paying taxes on it? How can you pay taxes on something that's illegal? Seems like a hooker paying taxes on income from johns...does that make prostitution legal? I'M CONFUZZLED!

Buzzby

From 1937 through 1971, the basis for federal marijuana prohibition was the Marijuana Tax Stamp Act, which required an exorbitant tax on the herb. The Catch-22 was that you couldn't possess the herb without the tax stamp and you couldn't get the tax stamp unless you had the herb in hand. This was declared unconstitutional under the Fifth Amendment because you cannot be required to incriminate yourself. In '71 it was replaced with the Controlled Substances Act, which somehow uses the Commerce Clause to justify federal involvement.


You are required to pay taxes on illegally earned income. That's how they finally put Al Capone away.

fight4rights

I'm still confused. Is this just a way for them to bust you a little more when you get in trouble for possession? They stick you for possession, then if the DA feels like being an asshole or making an example, also get you for "tax evasion"?


That's pretty cool. I think that judge knows that the drug laws are whack. I don't think that would happen in most scenarios of the judge was trying to put you away.

Where are these stamps purchased?

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Buzzby

Basically correct.


State Department of Revenue.

Kansas State Deparment of Revenue

Cassius

If you beat someone to death, are you charged with assault, battery, and murder, or just murder?

I know that "double jeopardy" isn't talking about a situation like this one (the tax on illegal goods), but it seems kind of similar to me, and I would think that you shouldn't be able to get cumulative punishments from multiple laws if you only committed one crime. The fact that you can't get the penalty increased for the primary crime, doesn't that indicate that the penalty is already severe enough, and by making a secondary law to attach further penalty -- isn't that cruel and unusual punishment or something?

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solutions

Very interesting.

Unfortunately this guy got screwed over after all:

After an arrest in August of 1995, Judge John Barclay agreed with Wilson’s premise that buying the license and pre-paying the tax according to state law removed him from jeopardy of prosecution.

While the county attorney tried to overturn Barclay’s ruling, the Arizona Department of Revenue continued to sell the controversial Cannabis Tax stamps. The state sold Wilson a total of about $5,000 worth of stamps over a period of three years.

Then Arizona’s Proposition 200, which provided authority for physicians to prescribe medical marijuana, passed overwhelmingly in November 1996. The state, however, claimed that pharmacists were forbidden by federal law to supply marijuana to patients.

Wilson responded by saying that he and other state-licensed dealers would be willing to supply therapeutic cannabis to medical marijuana patients. An article detailing the offer appeared on the front-page article in the Arizona Republic a few days after the passage of Prop. 200.

Shortly thereafter, the narcotics units of both the Phoenix and Tempe police departments began investigations into Wilson’s activities. Their efforts eventually led to a grand jury indictment and ten felony counts against Wilson.

At his trial, the court disallowed all of Wilson’s defenses. In pre-trial motions, the state asked the Court to suppress the license, evidence of tax paid, the Supreme Court’s 1994 decision, Judge Barclay’s 1995 decision, Proposition 200, religious-use arguments, and all references to applicable law. Superior Court Judge Alan Kamin agreed.

The prosecution experienced a tense moment during the trial when their undercover agent introduced two baggies of marijuana which Wilson had sold him. The 15-gram packages still had the tax stamps affixed. Wilson tried to show the bags with the stamps to the jury, but the state objected. With the jury sent from the courtroom, presiding Judge David Cole ordered that the stamps be detached from the evidence.

Wilson was convicted June 2nd on nine out of ten charges. Sentencing is scheduled for July 6th. The state is expected to ask for jail time. Wilson considers himself a Drug War "peace envoy." His message: taxation and regulation should replace war. He feels that the state is "shooting the messenger." An appeal is planned.

http://www.marijuananews.com/marijua..._wilson_ra.htm

http://www.marijuanalibrary.org/980812.html#pag

cray ass yankees

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Sec

Wouldn't that be evidence tampering?

For sure, this guy should appeal.

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TheNewGuy

I can't think of any way in which that could be legal.

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"Anyway, no drug, not even alcohol, causes the fundamental ills of society. If we're looking for the source of our troubles, we shouldn't test people for drugs, we should test them for stupidity, ignorance, greed and love of power." ~P.J. O'Rourke

solutions

This is the latest report I can find about this case. It's from 1998..

source: http://www.marijuanalibrary.org/980812.html#pag

I'm so curious if he appealed... are these court files public btw?

I tried to search on http://www.supreme.state.az.us/publi...on/default.asp but couldn't find it...