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Taxes Information |
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Truly Bizarre Taxes: The Tax on Illegal Drugs
One can never underestimate the enthusiasm that politicians have for trying to hunt up tax revenues. The creativity of some politicians can lead to bizarre taxes and unfortunate results. Taxes on Illegal Drugs One argument for the legalization of various narcotics is that massive tax revenues would be created. Interestingly, a few states already are trying to collect such taxes! More than 10 states have tried to tax people that possess illegal drugs. For example, Kansas levies a drug tax on dealers as soon as they take possession of the substance. To avoid prosecution for failure to pay the drug tax, individuals possessing the drugs are supposed to purchase "drug tax stamps" and attach the stamps to the drugs in question. The stamps are valid for 3 months. In an apparent attempt to promote compliance, the Kansas Department of Revenue promises: "A dealer is not required to give his/her name or address when purchasing stamps and the Department is prohibited from sharing any information relating to the purchase of drug tax stamps with law enforcement or anyone else." The tax is levied on cocaine, marijuana, methamphetamines and other hard drugs. Interestingly, the state collected over $300,000 in such taxes by going after individuals that were charged with criminal activity. This is better known as the "Al Capone Theory", which is derived from the fact that authorities were able to put away the famous mobster on tax evasion charges. Alas, criminal prosecutors have not always welcomed the illegal drug tax. Drug Tax Foils Prosecution of Drug Dealers in Texas The 5th Amendment of the Constitution protects Americans from being punished twice for the same crime. This concept, known as "double jeopardy", caused prosecutors in 1989 to literally beg the state comptroller's office to stop accepting tax payments by drug dealers. The reason? A Texas Criminal Court of Appeal ruled that the state law assessing taxes on illegal drugs constituted a "punishment". As a result, requiring the payment of the tax constituted double jeopardy if the taxpayer had already been charged criminally. In an attempt to get their clients off on drug charges, criminal attorneys began advising them to rush to pay their drug-related taxes. The theory was that once the taxes were paid, the drug dealer could not be prosecuted because doing so would constitute a second punishment! The appellate court agreed with the theory and the state comptroller immediately stopped collecting the Texas drug tax. Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
MORE RESOURCES: BLAKELY — Garbage fees will rise, but Blakely Borough Council doesn’t plan to hike electric rates or add property taxes as part of its proposed 2009 budget presented this week. MARBLEHEAD and mdash; Homeowners will pay more in property taxes next year. A tax rate of $8.99 and mdash; up from $8.34 and mdash; was announced Wednesday by assistant assessor Michael Tumulty. That translates into a bill for the median single-family homeowner that rises from $4,511 to $4,665. It's an increase of $114 or 3.4 percent. GREENFIELD - The value of single-family homes in the city has dropped, but the tax rate is projected to rise, yielding an overall increase in taxes for the average homeowner. The Three Gorges Project has turned over a total 20.277 billion yuan in national taxes since its first generating unit began operation on July 10, 2003, according to the State Administration of Taxation of the Three Gorges dam zone in Yichang, Hubei province. Since the first turbine generator was put in use, there are now 26 turbine generators in operation as of October 30 this year. By adding ... ST. PAUL (AP) — Minnesotans are set to pay more property taxes next year if a number of proposed local tax levies are adopted. The government should move to collect taxes on assets to help close off loopholes in the tax system and raise funds to develop the country's social safety net, according to local academics. Despite a stable general fund budget and no projected increase in real estate taxes, there was a downside to the Loyalsock Township budget work session Thursday afternoon. It involved another sewer rate increase as the township deals with federal- and state-mandated sewer system improvements. Residents will see a 15-percent increase in sewer rates for 2009. The Treasurer Michael Aird is not ruling out new taxes as Tasmania faces financial circumstances he is calling exceptional. (Springfield, MO) -- Have you got your property tax bill in the mail yet? Notices for real estate and personal property taxes were mailed out in Greene County last week. RALEIGH, N.C. -- Higher taxes or fees for drivers and vehicle owners could be on the horizon if the Legislature agrees with recommendations tentatively approved Wednesday by a state transportation panel. The 21st Century Transportation Committee asked the General Assembly to consider raising the automobile sales tax and vehicle registration fees or even charging motorists for how many miles they ... |
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