Tenn. Drug Tax Generates Revenue July 7, 2005
News Summary
Unlike most other states, Tennessee appears to be generating significant revenue from a law that requires drug users and dealers to pay a tax on their illegal transactions, the Associated Press reported July 6.Since the tax went into effect on Jan. 1, the state has collected $600,000 and has assessed $15 million more in taxes. The taxes include $3.50 per gram of marijuana, $50 per gram of cocaine, and $200 per gram of methamphetamine or crack cocaine. Those who do not pay the tax face having their assets seized and sold off to settle their state tax bill.
The tax is charged regardless of whether a criminal drug conviction is obtained.
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