User:Urve/Drug tax stamps in the United States

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Refer to caption
A $1 federal marijuana tax stamp required by the Marihuana Tax Act of 1937

In the United States, the federal government and some states have required that illicit drugs have tax stamps affixed to them.

Background and constitutional status[edit]

Federal taxation[edit]

State taxation[edit]

In their efforts to curtail illicit drug usage, many states have implemented a variety of taxation schemes.[1] While states can create excise taxes or collect fees in the form of licenses, drug tax stamps are the most popular implementation.[1] In most states, the anonymity of the buyer is secured, and they are required to affix the stamp to any drugs in their possession.[2] In states with a drug tax stamp scheme, most of the revenue generated is not by stamp purchases themselves, but instead by penalties for failure to purchase a stamp while in possession of a drug.[3] In general, drug tax stamp laws only apply to "drug dealers", a legal term of art meaning those who possess certain amounts of illegal drugs.[4]

Iowa[edit]

In 1990, Iowa implemented a drug tax stamp law.[5] Upon coming into effect, the law required drug dealers to purchase stamps and affix them to the drug.[6] There was a $215 minimum tax stamp purchase requirement, and for marijuana, the price was $5 per gram; for most controlled substances, the price was $250 per gram; and for individually-dosed controlled substances, the price was $400 per dose.[6] Those violating the law were subject to being fined the amount of the stamps with interest, as well as subject to conviction of a felony with a prison sentence and fine.[7] The law required that the anonymity of those purchasing stamps be protected.[8] In 1992, the Iowa Supreme Court declined to invalidate the scheme based on double jeopardy concerns and declared it a lesser included offense.[9] That year, it declined to invalidate the law based on self-incrimination grounds.[10] It also declined to invalidate the law based on void for vagueness claims in 1993.[11]

Nebraska[edit]

In 1990, Nebraska governor Kay Orr signed a bill to create a drug tax stamp system, which went into effect in 1991.[12] It required dealers to purchase stamps (at a varying rate) and affix them to the drug.[13] The scheme was challenged on Fifth Amendment grounds in 1993, but the Nebraska Supreme Court declined to invalidate the law as unconstitutional; they found that because the scheme allowed for anonymity and was primarily written to raise revenue, there were protections against compelled self-incrimination.[14]

Tennessee[edit]

The Tennessee Legislature implemented a drug tax stamp law in 2005.[15] It required dealers to affix purchased stamps to illicit drugs within two days of possessing them.[16] Violators were subject to paying the amount of the stamps with interests and additional fines as well as prosecution.[15] It had anonymity protections.[17] An appeals court ruled in 2007 that it was in violation of the Tennessee Constitution's proscription against "arbitrary, capricious, and unreasonable" taxes on "privileges".[18]

Wisconsin[edit]

In 1989, Wisconsin implemented a drug tax stamp law for dealers.[19]

See also[edit]

References[edit]

Citations[edit]

  1. ^ a b Hildy 1995, p. 937.
  2. ^ Hildy 1995, pp. 937–938.
  3. ^ Hildy 1995, p. 938.
  4. ^ Racaniello 1992, p. 665.
  5. ^ Swinton 1995, p. 81.
  6. ^ a b Swinton 1995, p. 83.
  7. ^ Swinton 1995, pp. 84–85.
  8. ^ Swinton 1995, p. 85.
  9. ^ Swinton 1995, pp. 87–89, 95.
  10. ^ Swinton 1995, p. 98.
  11. ^ Swinton 1995, pp. 99–100.
  12. ^ LeMay 1993, p. 314.
  13. ^ LeMay 1993, pp. 316–317.
  14. ^ LeMay 1993, p. 318.
  15. ^ a b Traughber 2007, p. 157.
  16. ^ Traughber 2007, pp. 157, 165.
  17. ^ Traughber 2007, p. 166.
  18. ^ Traughber 2007, pp. 158–159.
  19. ^ Chewning 2000, pp. 659–661.

Works cited[edit]

  • Chewning, Donald (2000). "The Wisconsin drug tax stamp law, the Fifth Amendment, and the realities of taxing controlled substances". Marquette Law Review. 83: 659–706.
  • Hildy, John (1995). "Fifth Amendment – Double jeopardy and the Dangerous Drug Tax". Journal of Law and Criminology. 85 (4): 936–961 – via HeinOnline.
  • LeMay, David A. (1993). "Nebraska's Marijuana and Controlled Substances Tax Stamp Act and self-incrimination: State v. Garza" (PDF). Creighton Law Review. 27: 313–359.
  • Racaniello, Frank A. (1992). "State drug taxes: A tax we can't afford". Rutgers Law Journal. 23: 657–681 – via HeinOnline.
  • Swinton, Paul (1995). "Iowa stamps on drugs: A constitutional analysis of Iowa Code chapter 453B". Drake Law Review. 44: 81–106 – via HeinOnline.
  • Traughber, Charles (2007). "Taxing the war on drugs: Tennessee's unauthorized substance tax". Tennessee Journal of Law and Policy. 3 (2): 157–180 – via HeinOnline.
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