ne can never underestimate In an apparent attempt to promote
the enthusiasm that compliance, the Kansas Department
politicians have for trying of Revenue promises:
to hunt up tax revenues. The
creativity of some politicians "A dealer is not required to give
can lead to bizarre taxes and his/her name or address when
unfortunate results. purchasing stamps and the
Department is prohibited from
Taxes on Illegal Drugs sharing any information relating
to the purchase of drug tax
One argument for the legalization stamps with law enforcement or
of various narcotics is that anyone else."
massive tax revenues would be
created. Interestingly, a few The tax is levied on cocaine,
states already are trying to marijuana, methamphetamines and
collect such taxes! other hard drugs. Interestingly,
the state collected over $300,000
More than 10 states have tried to in such taxes by going after
tax people that possess illegal individuals that were charged
drugs. For example, Kansas levies with criminal activity. This is
a drug tax on dealers as soon as better known as the "Al Capone
they take possession of the Theory", which is derived from
substance. To avoid prosecution the fact that authorities were
for failure to pay the drug tax, able to put away the famous
individuals possessing the drugs mobster on tax evasion charges.
are supposed to purchase "drug Alas, criminal prosecutors have
tax stamps" and attach the stamps not always welcomed the illegal
to the drugs in question. The drug tax.
stamps are valid for 3 months.
Drug Tax Foils Prosecution of
Drug Dealers in Texas already been charged criminally.
The 5th Amendment of the In an attempt to get their
Constitution protects Americans clients off on drug charges,
from being punished twice for the criminal attorneys began advising
same crime. This concept, known them to rush to pay their
as "double jeopardy", caused drug-related taxes. The theory
prosecutors in 1989 to literally was that once the taxes were
beg the state comptroller's paid, the drug dealer could not
office to stop accepting tax be prosecuted because doing so
payments by drug dealers. The would constitute a second
reason? A Texas Criminal Court of punishment! The appellate court
Appeal ruled that the state law agreed with the theory and the
assessing taxes on illegal drugs state comptroller immediately
constituted a "punishment". As a stopped collecting the Texas drug
result, requiring the payment of tax.
the tax constituted double
jeopardy if the taxpayer had
About the Author:
Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
Source: www.isnare.com
