DRUG DEALERS PAY $1.8M IN TAXES TO TENN.

But Most Don't Volunteer To Pony Up; Collections Usually Come After
Arrests

NASHVILLE -- Tennessee's tax on illegal drugs was a head-scratcher
when the state legislature enacted it in 2004 -- What drug dealer
would pay it? -- but it netted nearly $1.8 million in 2006, state tax
collectors announced Tuesday.

The Department of Revenue said it collected $1.774 million in
"unauthorized substances tax" last year, up from the $1.715 million
the tax generated in 2005, the first year it was collected.

The tax applies to "controlled substances and illicit alcoholic
beverage, including cocaine, crack, methamphetamine, marijuana and
moonshine."

The state sells unauthorized substances tax stamps in a confidential
process that is not disclosed to law enforcement agencies, except for
prosecution for violating the unauthorized substances tax law. Buying
the tax stamps does not provide immunity from criminal
prosecution.

A dealer is defined in the tax law as anyone who possesses more than
42.5 grams of marijuana, seven or more grams of any other
unauthorized substance that is sold by weight, 10 or more dosage
units of an illegal substance not sold by weight, or any illicit
alcoholic beverage.

But illicit drug dealers aren't exactly lining up to pay the tax.
Department spokeswoman Emily Richard said most of the tax is
collected after an arrest and when items like cars and boats seized
from drug dealers are auctioned off. Revenue agents are called after
an arrest and assess the tax rates specified in the 2004 law to the
drugs seized.

Assessments last year totaled $43.2 million, out of which the nearly
$1.8 million was collected.

Richard said a small percentage of the tax collections come from
stamp collectors who buy the tax stamps for their
collections.

Contact Nashville Bureau chief Richard Locker at (615)
255-4923.

'Crack' tax

Tennessee's Unauthorized Substance Tax Is levied at the following
rates:

$3.50 per gram of marijuana.

$50 per gram of cocaine.

$200 per gram of other controlled substance sold by
weight.

$50 for each 10 dosage units of any "low-street value drug" that is
not sold by weight

$200 for each 10 dosage units of any other controlled substance not
sold by weight.