cannabisnews.com: Iowa Touts Illegal Drug Stamp Tax Iowa Touts Illegal Drug Stamp Tax Posted by CN Staff on June 02, 2003 at 23:14:25 PT By Miranda Leitsinger, Associated Press Source: Associated Press Des Moines, Iowa - Caught with drugs? Better have a drug stamp. Iowa law taxes all illegal drugs - from marijuana to cocaine. The state issues stamps, which vary in cost and color according to the drug, to be affixed to the drug to show the tax has been paid."It was such a horse of a different color when it first came out," said Renee Mulvey, spokeswoman for the Iowa Department of Revenue and Finance. "It was just so unusual to be selling stamps to tax illegal drugs, that we expected a lot of misunderstanding." The stamps cost $5 a gram for marijuana, $750 per marijuana plant, $250 a gram for other drugs and $400 per 10 doses of drugs that come in tablet form, such as ecstasy. The minimum charge is $215.Some may get a good chuckle out of the idea of drug users trotting down to the revenue department to buy a tax stamp - only seven batches of stamps have been sold (none were sold last year) - but the state is making a small fortune off of those who get caught without them."We look at it as a way to tax the underground economy. Just because something is illegal doesn't mean it shouldn't be taxed," said Pete Bodyk, operations officer for the Kansas Division of Alcoholic Beverage Control, which collected about $1.3 million in drug stamp tax penalties and revenues for fiscal year 2002.Since Iowa enacted its drug tax in 1990, the state has collected nearly $4 million total in penalties and tax revenues.The drug stamp tax came about in the 1980s as the war on drugs was getting underway. In 1983, Arizona was the first state to enact a drug stamp tax, followed by at least 20 others, said Arturo Perez, a fiscal analyst for the National Conference of State Legislatures."It was viewed by those who champion and pass such measures that if you could further stiffen the penalties on drug dealers that you would, again, make it less enticing" to buy or sell drugs, Perez said.In Iowa, failure to affix a drug stamp is punishable by up to five years in prison and a $7,500 fine - for those who aren't habitual offenders. The civil penalty is two times what the person would have paid to get a stamp; interest accrues at 7 percent a year from the day of assessment."We hear all kinds of comments, pro and con, with the drug tax. We view it as a job," said Mulvey, adding that stamp collectors have described the stamps as "homely." The stamps, twice the size of those used on regular mail, come in colors such as burgundy and mustard yellow.Today, 23 states impose a drug stamp tax, but some have had to wrangle with the right of buyers not to incriminate themselves by buying a stamp.In Iowa, it's anonymous."If someone came in and purchased and it was obvious that they were making a purchase to actually put on their drugs, drug containers, we would not" call authorities, which the law prohibits, Mulvey said. "People come in to make a purchase, we keep our mouths shut."From July 2002 through March 2003, agency officials assessed $203,256 in penalties in 11 cases - about a third of the cases they investigated.Generally, the agency only goes after defendants who have assets and are not in prison. Otherwise, the debt would be uncollectable, officials said.One of those 11 cases involved a $119,000 assessment against former Des Moines Area Community College President David England, who pleaded guilty in April to possessing marijuana with intent to deliver and violating Iowa's tax-stamp law. England's wages will be garnisheed for payment, Mulvey said.The state collected as much as $637,635 in taxes and penalties in fiscal year 1994, but the amount has declined since then. Collections were $241,696 last fiscal year.At the same time, state narcotics agents continue to make bigger drug busts every year, such as the $6 million worth of cocaine found hidden in a car stopped along Interstate 80 last January.So, could the state be collecting even more in revenues?Not necessarily, Mulvey said. Budget cuts have hampered collection efforts - and those caught with a large cache of drugs might not be able to pay, she said."Because the street value is so high, does not mean the people have the money to pay the tax. After all, their drugs did not get sold," Mulvey said.There also is some question about whether the agency would be able to collect from someone who was not a resident of Iowa."It's much more difficult to collect tax when the individual is out of state," Mulvey said.Marijuana activist James Getman, who had about $30,000 in savings seized for failing to pay the drug tax, said he agrees with the slogan "no taxation without legalization."He attended "The Greater Mississippi River Valley Tea Party" held in Rock Island, Ill., about 10 years ago to protest the tax."It was like the Boston tea party, we (were) rebelling against an unjust tax," said Getman, director of Iowa Norml, a nonprofit organization supporting the reform of marijuana laws.However, Getman said, the group did not throw marijuana into the river in protest.On the Net: NORML: http://www.norml.org National Conference of State Legislatures: http://www.ncsl.org/Iowa Department of Revenue and Finance: http://www.state.ia.us/government/drfSource: Associated PressAuthor: Miranda Leitsinger, Associated PressPublished: Tuesday, June 3, 2003Copyright: 2003 Associated Press Iowa NORMLP.O. Box 2144 Davenport, IA 52809Phone: (563) 386-0099 Contact: James GetmanE-mail: qchemp qconline.comWeb Site: http://www.iowanorml.org Related Articles:Illegal-Drug Tax Buds Into Profithttp://cannabisnews.com/news/thread15288.shtmlLawmakers Debate Whether Drug Tax May Snare http://cannabisnews.com/news/thread8884.shtml Home Comment Email Register Recent Comments Help Comment #5 posted by The GCW on June 03, 2003 at 17:12:33 PT Also, if I remember right, I read a story a year or so ago from Kansas that indicated they sell the tax stamps mostly to stamp collectors. [ Post Comment ] Comment #4 posted by afterburner on June 03, 2003 at 11:06:21 PT: The Marihuana Tax Act of 1937... was declared unconstitutional by the US Supreme Court in 1969 for the reason that it required self-incrimination which is contrary to Amendment 5 of the Bill of Rights. The petitioner was Timothy Leary. "In the major decision during this period, [in 1969] the United States Supreme Court voided the federal provisions most often employed to prosecute the possessor (buyer) of marijuana. In the first arm of Leary v. United States,2 the Court held that the Fifth Amendment relieves unregistered buyers of any duty to pay the transfer tax and to file the written order form as required by the Marihuana Tax Act.3 The Court reasoned that, since filing such a form would expose a buyer to liability under state law, under the occupational tax provisions of the Tax Act, and perhaps under the marijuana provision of the Import and Export Act,4 the filing provisions violated the fifth amendment guarantees against self-incrimination." -MARIJUANA LEGISLATION CLASHES WITH JUDICIAL SKEPTICISM AND EMERGING VALUES http://www.druglibrary.org/schaffer/LIBRARY/studies/vlr/vlr9.htmDue to this victory for the drug law reformers a new law was written in 1970, The Comprehensive Drug Abuse Prevention and Control Act. "Oct 27, 1970 The Comprehensive Drug Abuse Prevention and Control Act is passed. Part II of this is the Controlled Substance Act (CSA) which defines a scheduling system for drugs and places most of the known hallucinogens (LSD, psilocybin, psilocin, mescaline, peyote, cannabis) in Schedule I.1972 The Nixon-appointed Shafer Commission urged use of cannabis be re-legalized, but their recommendation was ignored. Medical research continues." -marijuana history timeline & marijuana addiction treatment by ... http://www.marijuanaaddiction.com/marijuana_timeline.html"Accusations of marijuana's addictive powers are also under attack from well-designed research studies. During the Nixon administration (1972), the federal government reviewed existing studies and concluded that marijuana did not possess physically addictive traits. The great majority of articles published in medical journals since that time have agreed. For example, Dr. Jack Henningfield of the Addiction Research Center (part of the National Institute on Drug Abuse) and Dr. Neal Benowits of the University of California ranked heroin, cocaine, nicotine, alcohol, caffeine, and marijuana in terms of their power to induce psychological dependence. Nicotine was first, marijuana last. Marijuana also ranked last in terms of producing a physical tolerance to the drug, and was deemed least likely to produce signs of withdrawal upon quitting (Schlosser, 1994, p.92)....Regardless of research findings refuting long-held claims about marijuana addiction since 1972, the old arguments of the 1930s continue to be used when establishing new soft drug laws. People's tendency to hold onto their initial beliefs means that most of their knowledge on the topic of marijuana is based on what their parents taught them. While it is the responsibility of all parents to teach their children values, this is not an acceptable basis for creating law." -Prohibition and Marijuana: History Does Repeat (November 1995) http://www.wikman.com/eric/marijuana.htmlIf the federal Marihuana Tax Act of 1937 was unconstitutional in 1969 for violating Amendment 5 of the Bill of Rights, then this new Iowa tax law, the Arizona tax law, and 22 other such state laws are all unconstitutional in 2003. Fight on in the courts. Despite recent setbacks they are our best hope for reasoned reform. If it's really anonyomous, how does the Iowa government know whether or not the stamps have been bought? Why not just buy a bunch of stamps as a preventative measure? Half-baked laws need to be changed: if they want the taxes, they need to re-legalize.ego transcendence follows ego destruction when the courts follow their own oath to Tell The Truth, The Whole Truth, And Nothing But the Truth and when law makers start making laws Of The People, By The People, For The People. [ Post Comment ] Comment #3 posted by j4c2d0 on June 03, 2003 at 07:58:52 PT Tax on illegal drugs...isn't that illegal... seems to me that if a government, be it state or federal taxes something that they themselves call illegal, it would automatically legalize such illegal activities...Iowa'ns otta rejoice because their government has legalized drugs... you just have to pay the price and follow the law..at the same time they are setting an example for the fed's that you can make money, and improve the quality of life at the same time... however I would hope that if the fed's where to ever oneday take this approach, that voters (you and I) would make shure that they don't over charge us... http://www.medicalmarijuanamania.freewebspace.com [ Post Comment ] Comment #2 posted by Jose Melendez on June 03, 2003 at 07:19:44 PT Cannabis Prohibition History I just finished reading adrugwarcarol.comCheck out the Table of Contents:A Drug War Carol - Table of Contents PAGE 1 - Outside McCzar's Office PAGE 2 - Inside Scrooge McCzar's Office PAGE 3 - The Cratchets PAGE 4 - McCzar - Cratchet Confrontation PAGE 5 - McCzar's Townhouse PAGE 6 - Anslinger's Ghost PAGE 7 - Anslinger's Ghost Confronts McCzar PAGE 8 - Ghosts Of Drug Warriors Past PAGE 9 - Prison Infirmary PAGE 10 - Chains... PAGE 11 - More Ghosts To Come PAGE 12 - The Ghost of Christmas Past PAGE 13 - Hemp in Centuries Past PAGE 14 - Dr. Halsted PAGE 15 - Dr. Halsted Kicks His Habit PAGE 16 - Prelude to the War PAGE 17 - William Hamilton Wright PAGE 18 - Richmond Pearson Hobson PAGE 19 - Charles Towns PAGE 20 - Wright Again PAGE 21 - Wright's Downfall PAGE 22 - The Harrison Narcotics Act PAGE 23 - Harrison Act II - Dr. Terry PAGE 24 - Richmond Pearson Hobson Again PAGE 25 - Dr. William P. Butler PAGE 26 - The Volstead Act and the Joys PAGE 27 - Servants of Joy PAGE 28 - The Duck Hunter PAGE 29 - Official Corruption PAGE 30 - Drinking Increases PAGE 31 - Harry Anslinger and William Randolph Hearst PAGE 32 - Anslinger Continues PAGE 33 - The LaGuardia Panel PAGE 34 - La Guardia Panel Continues PAGE 35 - Boggs, Daniel and Intro Rufus King PAGE 36 - The Law That Wasn't PAGE 37 - King & The Joint Committee Report PAGE 38 - The King-Anslinger Debates PAGE 39 - Tricky Dick PAGE 40 - DEA Founded, Carter Elected PAGE 41 - Bourne's Downfall PAGE 42 - Reagan & Asset Forfeiture PAGE 43 - Media Frenzy Builds Drug War PAGE 44 - Begin Kerry Wiley Story PAGE 45 - Kerry Busted In Malaysia PAGE 46 - Grinspoon To The Defense PAGE 47 - Grinspoon's Day In Court PAGE 48 - Grinspoon Story Part II PAGE 49 - Grinspoon Denouement; King George I PAGE 50 - Bill Clinton, Medical Marijuana Initiatives PAGE 51 - Reverberations PAGE 52 - Christmas Present PAGE 53 - Ghost of Christmas present / Cratchet makes bail PAGE 54 - Cratchet & Tim / Mj In Infirmary PAGE 55 - Christmas Present's Final Warning To Scrooge PAGE 56 - Ghost of Christmas Future PAGE 57 - Storming McCzar's Townhouse PAGE 58 - McCzar's Drug Raid PAGE 59 - Drug War neighborhood PAGE 60 - It's the Cratchets PAGE 61 - McCzar Wakes Up PAGE 62 - The Christmas Day Party At Mcczar's Aunt's House PAGE 63 - Final Confrontation With Anslinger's Ghost THE END http://www.adrugwarcarol.com [ Post Comment ] Comment #1 posted by The GCW on June 03, 2003 at 03:31:50 PT If Your are going to disobey... and not love Your brother, there are all kinds of ways to do it.This would tend to make Iowa that much lower than the next scum. 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