$88,000 Tax Bill Follows Marijuana Arrest

[User]

Getting arrested on marijuana charges wasn’t half as bad as what came next for Darwin Bisping, an admitted marijuana user who says he needs the drug for medical reasons.

Buncombe County sheriff’s deputies in July seized 114 pot plants from the East Asheville rental home Bisping shares with Jennifer McCart.

Both face charges of manufacturing marijuana, trafficking and other related offenses.

Then the N.C. Department of Revenue delivered each an $88,866 bill for unauthorized substance taxes.

“I don’t think it’s right that the state of North Carolina can tax you on something you can’t even legally grow,” said Bisping, 32, a pizza delivery driver.

State and local authorities said Wednesday what happened to Bisping, 32, and McCart, 30, is not rare.

When law enforcement makes a drug bust, officials notify state revenue agents, Buncombe County Sheriff Van Duncan said. The agents assess the value of the contraband and send a bill.

The tax penalty is a civil matter separate from criminal prosecution. State legislators made the distinction in 1998. Their action came after questions about whether a person convicted of drug crimes was being punished twice by the unauthorized substance tax, said George Valsame, assistant director of the revenue department’s unauthorized substance tax division.

Marijuana, coc*ne, moonshine and other illegal drugs or prescription drugs obtained unlawfully are subject to taxation.

Under state law, marijuana of more than 42.5 grams seized in criminal investigations is subject to a tax rate of $3.50 per gram. The tax rate for more than seven grams of cocaine is $50 per gram.

Bisping and McCart were both individually taxed on 18,053 grams of seized marijuana, adding up to $63,185 in taxes, according to their tax assessment.

They also were charged $25,274 in penalties and an additional $406 in interest accrued since their July 29 arrests.

Bisping disputes the weight total of the drugs on the bill and was shocked by the amount they owe.

“This ain’t about justice, this is about money,” he said.

Bisping said he uses marijuana to calm long-term nerve problems and help him swallow food more easily after a surgery last year on his esophagus. He plans to lobby for the plant’s legalization.

“I’ve never been arrested for beating anybody up, never been arrested for stealing anything. I’ve never been arrested for anything but marijuana,” Bisping said.

He and McCart are being represented by a public defender as they deal with the criminal charges.

Valsame said the hefty taxes are simply the state’s way of collecting revenue on an illegal trade.

“The tax is set high enough to maybe reflect the amount of income being generated by the underground economy of these drugs,” said Valsame, adding that it can be difficult to keep up with fluctuating drug values.

A 75 percent cut of tax revenue from drugs goes back to the law enforcement agency that made the seizure, while the other 25 percent goes to the state’s general fund. Additional penalties support the school board, Valsame said.

Drug dealers can pay taxes on their illegal substances through an anonymous return and avoid further penalties and fees if they are arrested.

The returns do not require identifying information and tax officials cannot share it with law enforcement agencies.

Tax officials issue stamps to these dealers equal to the amount they paid, which they must attach to their drugs.

“In the entire history of the program, I think all of the stamps we have sold as far as we know have gone to stamp collectors. We don’t have drug dealers coming and buying these stamps,” Valsame said.


News Hawk: User: http://www.420magazine.com/
Source: CITIZEN-TIMES.com
Author: Josh Boatwright
Copyright: 2008 CITIZEN-TIMES.com
Contact: CITIZEN-TIMES.com Website Feedback
Website: $88,000 tax bill follows marijuana arrest

[zolar]

don't they have to prove a tyransaction to tax it ....