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« Entrepreneurial Documentary: Free Screening Monday in Nashville | Main | After the Surge » September 7, 2007Court: Tennessee "Crack Tax" UnconstitutionalThe Tennessee Court of Appeals has ruled the state's "crack tax" to be unconstitutional, violating both the state and federal constitutions. The Tennessee Center for Policy Research, which has done research showing that the "unauthorized substances tax" costs taxpayers more to administer than it generates in revenue, issued a press release applauding the ruling and urges the Department of Revenue to not appeal it to the state Supreme Court. "It’s time for the Department of Revenue to stop wasting time and taxpayers' money defending this appalling and unconstitutional law," TCPR President Drew Johnson said. "But if the Department unwisely continues to fight against the Constitution, I have faith that the Constitution will again prevail." The tax was first ruled unconstitutional more than a year ago, but the Bredesen administration arrogantly continued to collect the tax, asserting that the ruling only applied to the drug dealer who brought the case, and not statewide. Update: The Bredesen admininstration appears intent on continuing to collect the tax, despite two court rulings that it is unconstitutional, as a Department of Revenue spokesman says the department will continue to collect the tax while pursuing further legal appeals. My question is this: If the state Supreme Court ultimately rules the tax is unconstitutional, will the state have an obligation to repay all that it has collected? And, if so, has the Bredesen administration set aside money for that possibility? Posted in Tennessee Government News
Comments
It is often that unconstitutional taxes do not get reimbursed. Florida had an out of state impact fee for autos that was unconstitutional and only part of the victims got their money back. In city and county audits, there is a column set aside for uncollected or un collectable taxes. I would like to know what percentage of the Crack Tax is actually collected. My guess is that it is less than 1%. I would also like to know how much they spend seizing property. This has to have an administrative burden also. Posted by: Danny L. Newton at September 10, 2007 2:01 AMCan the state seize property that is jointly owned because of this drug tax? Posted by: Christina Dodge at January 24, 2008 5:09 PMPost a comment
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