Friday, October 23, 2009
States Already Taxing Marijuana
During my research for a PRI paper on state tax policies, I came across this interesting nugget (see page 13 of this pdf):
CONTROLLED SUBSTANCES TAXThe part I put in bold just cracks me up. Note that for the other sections, they don't say things like, "The Business Entity Tax places a burden on those selling goods in Connecticut."
A tax is levied on marijuana and controlled substances which creates an economic burden on drug dealers. Payment of the tax is indicated by the affixing of stamps to the marijuana or controlled substance. The tax is due and payable immediately upon acquisition or possession of the drug in Connecticut by a dealer.
Revenue
FY 2005-06 $90,329
2006-07 40,851
2007-08 61,262
Basis and Rate
$3.50 per gram of marijuana;
$200 per gram of controlled substance; and
$2,000 per 50-dosage unit of controlled substance not sold by weight.
Comments:
Maybe I'm dense (I think this is true generally, but specifically here) ... but I don't get it.
How do the stamps get on the marijuana in the first place? Is this only for medical marijuana? I didn't think that Connecticut had mm dispensaries.
Not that this should shock me, but the whole thing seems amazingly hypocritical. It's illegal to sell it but if we catch you with it, you need to pay a tax before you go to jail for selling it?
How do the stamps get on the marijuana in the first place? Is this only for medical marijuana? I didn't think that Connecticut had mm dispensaries.
Not that this should shock me, but the whole thing seems amazingly hypocritical. It's illegal to sell it but if we catch you with it, you need to pay a tax before you go to jail for selling it?
# posted by 
: October 23, 2009 at 9:43 AM
: October 23, 2009 at 9:43 AM
M4Liberty, I don't know for sure about Connecticut, but there are definitely states where marijuana is totally illegal, and yet it also has a tax like this. I know because in the WSJ within the past few months, I read about convicted drug dealers who were appealing the taxes as unfair (not the formal legal complaint).
I think you're totally right, that nobody walks in and says, "Hi I'm a drug dealer and need $500 in stamps." I think if you get convicted of dealing pot, then the government says, "Not only are you going to jail, but you owe us $100k in back taxes."
I think you're totally right, that nobody walks in and says, "Hi I'm a drug dealer and need $500 in stamps." I think if you get convicted of dealing pot, then the government says, "Not only are you going to jail, but you owe us $100k in back taxes."
Thanks for the clarification ... I just wanted to make sure that I wasn't completely off base.
Pretty incredible.
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Pretty incredible.
# posted by : October 23, 2009 at 11:58 AM
: October 23, 2009 at 11:58 AM Subscribe to Post Comments [Atom]
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