SPITZER PROPOSAL: TAX MARIJUANA, OTHER SUBSTANCES

ALBANY - If you want to smoke pot, you have to pay
taxes.

Gov. Eliot Spitzer's budget proposal included a bill that would
require all marijuana and other controlled substances in the state to
have a tax stamp. Twenty-nine states, from Massachusetts to Nevada,
currently tax drugs.

Spitzer estimates the collection could bring in $13 million this
fiscal year, and $17 million the next.

Budget officials said they researched other states' laws to come up
with the fees and regulations, though they were doubtful many dealers
or users would contact the Department of Taxation and Finance. If
people brought in on charges had drugs without a tax stamp, they
would then be charged the appropriate taxes.

The bill sets a tax stamp rate for marijuana of $3.50 per gram, and
for other controlled substances $200 per gram, regardless of purity.
The bill includes a confidentiality clause, which would allow people
to request a tax stamp from the state and, in return, their
information would not be given to the police.

Alcohol was also targeted in the budget proposal. One bill would
place flavored malt beverages, such as hard lemonade, in a new,
separate category of alcoholic beverages for taxing purposes. They
would be taxed at the rate of $2.54 per gallon or 67 cents per liter.
Beer is taxed at 11 cents per gallon.