LOUISIANA'S ILLEGAL DRUG TAX LAW DEEMED CONSTITUTIONAL

Many States Have Similar Statutes

In January, a batch of marijuana-laced Rice Krispie Treats cost a
Tennessee man, William Hoak, $11,506 because his items were not
decorated with a Tennessee illegal drug tax stamp.

Illegal drug tax laws are challenged on constitutionality because many
people do not understand how an illegal substance can be taxed.

Most states have adopted the illegal drug tax, Arizona being the first
in 1983. New York Gov. Eliot Spitzer outlined his plan this past month
to adopt the illegal drug tax, according to The New York Times. This
will make New York the 30th state to acquire the tax.

Louisiana law requires illegal drug sellers to purchase a drug tax
stamp at the Department of Revenue, according to the National
Organization for the Reform of Marijuana Laws. A seller anonymously
pays the required tax depending on the contraband's gram size. The
drug seller then receives a stamp to place on each gram of marijuana.

Louisiana's Marijuana and Controlled Dangerous Substance Tax Law, RS
47:2601, states an individual is required to pay $3.50 per gram of
marijuana and $200 per gram of dangerous substances, such as cocaine.

"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," according to the NORML
Web site.

If a seller in Louisiana is caught without paying the tax, the penalty
is 200 percent of the tax with jail time of up to five years.

Some states declared the illegal substance tax as a violation of
constitutional rights, such as double jeopardy and
self-incrimination.

The U.S. Supreme Court ruled Montana's drug tax unconstitutional in
the 1994 case Department of Revenue of Montana v. Kurth Ranch.

Christopher Reinhart, research attorney with the Connecticut Office of
Legislative Research, said Montana's drug tax violated the Fifth
Amendment's double jeopardy clause.

"In this case, Montana attempted to collect the tax after the
defendant was convicted of drug possession," Reinhart wrote on
Druglibrary.org - an online library for drug policy.

Several University students expressed their confusion about
Louisiana's illegal drug tax law.

"I don't understand, it's illegal to even have marijuana," Philip
Schleismann, psychology junior, said. "To fine a person after they've
been caught seems like double jeopardy to me."

But Susan Kalinka, University law professor, said a person who sells a
controlled substance at a profit is subject to tax, just like the
profit from the sale of all other types of property.

"There is no problem under the Fifth Amendment because a tax does not
violate Due Process," Kalinka said. "Penalties and interest for
failure to pay a tax are civil, not criminal penalties."

Due Process states the U.S. government may not take a citizen's life,
liberty or property without prosecuting that individual in court,
Kalinka said.

Craig Clement, international trade and finance sophomore, said it is
weird for the government to tax an item they do not recognize as legal.

"If marijuana was legal, I could completely understand this tax,"
Clement said.

Paul Baier, University law professor, said Louisiana's drug tax is
legal because of the Harrison Narcotic Act of 1914 that levied a tax
on transactions involving illegal narcotics.

"Louisiana's Marijuana and Controlled Dangerous Substances Tax is
quite constitutional," Baier said. "Louisiana, like the United States,
has the power to levy taxes on commercial transactions, even including
illegal drug sales."

The Times reported South Dakota's highest court repealed its drug law
because it required a person to register prior to buying the stamp.
The court declared this unconstitutional because of the
self-incrimination clause of the Fifth Amendment.

"I can't see anyone seriously buying the stamp," Clement said. "It
would be too intimidating to even anonymously get one."

States modified their laws to allow sellers to stay anonymous while
purchasing a tax stamp. Louisiana law RS 47:2603 specified that
"dealers are not required to give their name, address, Social Security
number or other identifying information on the form."

Reinhart said several states either do not enforce the law or "collect
minimal revenue" from the tax. Louisiana was listed as one of the states.

The state collected $32,477 on drug tax stamps between 2005 and 2006,
according to the Louisiana Department of Revenue's Tax Collection Report.