Ah, the good old days of Prohibition -- 2007!

[draconis]

According to this article from Time, Tennessee still remembers the Good Old Days when it could make money by taxing illegal moonshine. The Illegal Substances Tax was enacted in 2004 and has netted $3.5 million in extra revenues.

Heaven knows they need the money!

Comments

[saxononyx.livejournal.com]

hey its just collecting sales tax. just like on food, or anything else.

[jcbdragon.livejournal.com]

No, because you don't have to pay sales tax until there is a transaction, and then the amount of tax is based on the sale price. This is a tax for simply possessing the illegal substances.

[saxononyx.livejournal.com]

which they wont pay sales tax on when its sold. so the sales tax is collected at a differt time.

or the other way to look at it is as the tax stamps required on many other conumables such as alchohol and tabacco.