Cannabis News Media Awareness Project
  Drug Offenders Expected To Pay Tax
Posted by FoM on July 05, 2001 at 10:21:27 PT
By Mike Baggett, Messenger-Inquirer 
Source: Messenger-Inquirer 

cannabis Dealing drugs isn't a tax-free business in Daviess County anymore. A new law that went into effect June 21 is expected to reinforce a 1994 law that has been used sparingly, if at all, in Daviess County.

House Bill 356 allows the Kentucky Revenue Cabinet to issue tax bills in marijuana and other controlled-substance cases where there has been a conviction or guilty plea. Rep. Robin Webb, D-Grayson, said the law was changed as a "constitutional safeguard." Under the old law, a person could be subject to paying the tax without a conviction for drug possession.

The new law makes commonwealth and county attorneys across the state responsible for filing tax liens against a person within 72 hours of a conviction.

Few people know there is a marijuana and controlled substance tax in Kentucky, Assistant Daviess Commonwealth's Attorney Ken Nall said. Taxable activity is defined as anyone "producing, cultivating, manufacturing, importing, transporting, acquiring, purchasing, storing or selling large quantities of drugs."

To be in compliance with state law, a person has to purchase a tax stamp for his illegal drugs, a stamp comparable to those purchased by cigarette and alcohol vendors.

Any personal information submitted to the KRC is not disclosed to law enforcement agencies, said Carolyn Blankenship, KRC supervisor.

Those required to purchase stamps include anyone with:


* More than five marijuana plants with foliage at $1,000 per plant.

* At least 42.5 grams of marijuana detached from the plant on which it grew, $3.50 per gram.

* Seven grams of any controlled substance which is not sold by weight, $200 per gram.

* 50 or more dosage units of any controlled substance not sold by weight, $2,000 per 50 units.


"These won't be filed on all drug cases, because most don't involve the quantities called upon," Nall said.

Nall filed his first lien against a drug offender June 21 when David Matthew Starnes, 25, of the 800 block of Cedar Street pleaded guilty to charges of trafficking in a controlled substance within 1,000 yards of a school and possession of drug paraphernalia.

Starnes, who possessed 173.7 grams of marijuana, must pay $600 in taxes plus interest for the drug, Nall said.

Blankenship said she was unsure how the new law would affect revenues coming into the revenue cabinet.

During the law's first year, the tax generated $15,987. Last year it generated $54,687, Blankenship said.

More money is expected to be coming from Daviess County. Officials from the Owensboro Police Department and Daviess County Sheriff's Department said they never enforced the old law.

Source: Messenger-Inquirer (KY)
Author: Mike Baggett, Messenger-Inquirer
Published: July 5, 2001
Copyright: 2001 Messenger-Inquirer
Website: http://www.messenger-inquirer.com
Contact: readerswrite@messenger-inquirer.com

Related Articles:

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http://cannabisnews.com/news/thread8884.shtml

Man Assessed $1 Million for Pot
http://cannabisnews.com/news/thread5955.shtml


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Comment #1 posted by jacksplace58 on July 06, 2001 at 11:44:31 PT
the law
Sounds to me like the state needs to arrested for conspiracy to profit from illegal drug sales,.....

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